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.

The answer is: Both I and II are correct

Explanation:

Since Security A has a higher standard deviation of returns than security B, we know that it also has a higher risk premium than security B. (The higher the risk, the higher the risk premium).

Following that logic, the expected returns of security A should also be higher than the returns of security B (the higher the risk, the higher the expected returns).

answer; intellectual property protection;

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;