Which one of the following statements is correct? The lower the average return, the greeater the risk premium The risk premium is unrelated to the average rate of return. The lower the volatility of returns, the greater the risk premium The greater the bolatility of returns, the greater the risk premium. The risk premium is not affected by the volatility of returns Why is the expected return on common equity always higher than the expected return on debt? Debt cannot legally have much expected return. Debt has less risk than equity Equity has less risk than debt Equity can only have a positive beta