Security a Has a Higher Standard Deviation of Returns Than

Multiple Choice

Security A has a higher standard deviation of returns than Security B We would expect that ________.
I. Security A would have a higher risk premium than Security B
II. the likely range of returns for Security A in any given year would be higher than the likely range of returns for Security B
III. the Sharpe measure of A will be higher than the Sharpe measure of B.

A) I only
B) I and II only
C) II and III only
D) I, II and III