An analyst gathers the following information about three securities: | Security | Total Variance of Returns | Nonsystematic Variance of Returns | |------------|---------------------------|----------------------------------| | Security 1 | 0.20 | 0.05 | | Security 2 | 0.30 | 0.25 | | Security 3 | 0.35 | 0.22 | According to capital market theory, which security has the highest expected return? | Chartered Financial Analyst Level 1 Quiz - LeetQuiz