Which One of the Following Statements Is Correct

question 62

Multiple Choice

Which one of the following statements is correct?

• A)The risk-free rate of return has a risk premium of 1.0.
• B)The reward for bearing risk is called the standard deviation.
• C)Risks and expected return are inversely related.
• D)The higher the expected rate of return, the wider the distribution of returns.
• E)Risk premiums are inversely related to the standard deviation of returns.

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