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Which one of the following statements is correct? a. Risks and expected return are inversely related (if one goes up, the other goes down) b.

Which one of the following statements is correct?

a. Risks and expected return are inversely related (if one goes up, the other goes down)

b. The higher the variability of returns, the higher the expected rate of return

c. The risk-free rate of return has a risk premium of 1.0

d. Standard deviation of a portfolio generally increases when stocks are added to the portfolio

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