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Security A has a higher standard deviation of returns than security B. We would expect that: I. Security A would have a higher risk premium

Security A has a higher standard deviation of returns than security B. We would expect that:

I. Security A would have a higher risk premium than security B.

II. The likely range of returns for security A in any given year would be higher than the likely range of returns for security B.

III. The Sharpe ratio of A will be higher than the Sharpe ratio of B.

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