The lower the standard deviation of returns on a security, the _____ the expected rate of return and the _____ the risk.

Name: The lower the standard deviation of returns on a security, the _____ the expected rate of return and the _____ the risk.
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A lower standard deviation indicates less variability in returns, suggesting lower risk. However, it does not necessarily imply a higher expected rate of return; often, lower risk is associated with lower expected returns.

The Lower the Standard Deviation of Returns on a Security