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If returns of stock A have higher variance than returns of stock B, then I. the risk premium of stock A should be higher than
If returns of stock A have higher variance than returns of stock B, then I. the risk premium of stock A should be higher than that of stock B. II. the excess return of stock A should always be higher than that of stock B. III. the Sharpe ratio of stock A should be lower than that of stock B.
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