The higher the standard deviation of returns on a security, the _____ the expected rate of return and the the risk 1) lower; higher 2) You cannot determine anything about the expected rate of return from the standard deviation. 3) higher; lower 4) lower; lower 5) higher; higher Calculate the expected return on a stock with a beta of 1.02. The risk-free rate of return is 3% and the market portfolio has an expected return of 9%. (Enter your answer as a percentage. For example, enter 1.53% instead of .0153.) Your Answer: Answer units A risky security has the same risk as the overall market. What must the beta of this security be? 1) 1 2) > 1 3) > 0 but