Page of 10 ZOOM 3. Stock A has an average rate of return of 15% and stock B's average return is 10%. Which of the following statement is correct? (A) (B) Stock A is definitely better than stock B. It's hard to tell which one is riskier. If A is indeed better than B, investors should choose A only. Even if A is indeed better, investors should still consider a mixture of A and B. 4. Which statement is correct? o denotes standard deviation. (A) If OA=-1, OB= -2, then asset A is riskier. (B) If on=-1, OB= -2,, then asset B is riskier. (C) If on= 1, = 0.5, then it must be true that asset A is riskier which must warrant a higher risk premium. (D) It is possible that on = 0B, and the risk premiums are different depending on how they are correlated with the market