Which One of the Following Statements Is Correct

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.