Which of the following statements are correct concerning the variance of the annual returns on an investment?

I. the larger the variance, the more the actual returns tend to differ from the average return.

II. the larger the variance, the larger the standard deviation.

III. the larger the variance, the greater the risk of an investment.

IV. the larger the variance, the lower the expected return

Select one:

1. I and II only

2. I and III only

3. II, III, and IV only

4. I, II, and III only