Which of the Following Is True About Risk and Return

Multiple Choice

Which of the following is true about risk and return?

A) Riskier assets will, on average, earn lower returns.
B) The reward for bearing risk is known as the standard deviation.
C) Based on historical data, there is no reward for bearing risk.
D) An increase in the risk of an investment will result in a decreased risk premium.
E) In general, the higher the risk the higher the expected return.