Comparing the returns of two portfolios

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You are comparing the returns of two portfolios for a 10-year period. Portfolio I has a lower dispersion of returns and a higher average rate of return than Portfolio II. Given this, what do you know with certainty?

Portfolio I has a lower standard deviation than Portfolio II.

Portfolio I is riskier than Portfolio II.

Portfolio II has less total risk than Portfolio I.

Portfolio I will outperform Portfolio II over the next 10 years.

Portfolio II consists of more individual stocks than Portfolio I.

Reference no: EM131855741

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