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Which one of the following statements is correct? 1) Risks and expected return are inversely related. 2) The higher the expected rate of return, the

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Which one of the following statements is correct? 1) Risks and expected return are inversely related. 2) The higher the expected rate of return, the riskier the asset. 3) The reward for bearing risk is called the standard deviation. 4) The risk-free rate of return has a risk premium of 1.0

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