If We Assume That the Standard Deviation on Company A's

Multiple Choice

If we assume that the standard deviation on Company A's shares is greater than that on Company B's shares, this indicates that:
I.the required rate of return on Company A's shares is higher than that on Company B's shares.
II.the required rate of return on Company A's shares is lower than that on Company B's shares.
III.the potential loss from Company A's shares is greater than that from Company B's shares.
IV.the potential loss from Company A's shares is smaller than that from Company B's shares.
V.there is no difference between the required rate of return on and potential loss from Company A's
Shares and those associated with Company B's shares.

A) I and III only.
B) I and II only.
C) II and III only.
D) II and IV only.
E) V only.