As a recent college graduate, Dora has a temporary inability to pay her rent and is forced to move back to her old bedroom in her parent’s house. Dora’s parents, having taken an economics class decades ago, may be unconcerned with her current low-income situation because they think she:

How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c. increase prices

Your take on decision making process

Security a has a higher standard deviation of returns than security b. we would expect that: (i) security a would have a risk premium equal to 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 ratio of a will be higher than the sharpe ratio of b. (a) i only (b) i and ii only (c) ii and iii only (d) i, ii and iii