Which of the following is a true statement regarding risky financial assets? Comparison of two different risky assets can be simplified by calculating the expected A) return for each The risk premium is the expected return on a risky asset less the return on a risk-free B) asset. The risk premium is the difference between the return on a risky asset and the return C) on the market portfolio. The expected return on an asset is equal to the sum of the possible returns divided by D) their probabilities. Expected returns depend on the states of the economy but not the associated