If Asset A has a historically higher level of risk than Asset B, then: it likely has a higher expected return. it is guaranteed to have a higher return than Asset B next year. O the market for Asset A is less efficient than the market for Asset B. Asset A's price must be responding to news events faster.

If Asset A has a historically higher level of risk than Asset B, then: it likely has a higher expected return. it is guaranteed to have a higher return than Asset B next year. the market for Asset A is less efficient than the market for Asset B. Asset A 's price must be responding to news events faster