Indirect price discrimination differs from direct price discrimination because: in indirect price discrimination, high value consumers can sometimes still get the low price in direct price discrimination, firms do not have to worry about cannibalizing. direct price discrimination encourages rivals to enter but indirect discrimination does not. there is no difference between the two.

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