When the percentage change in price is greater than the resulting percentage change in quantity demanded, Multiple Choice an increase in price will increase total revenue. demand may be either elastic or inelastic. a decrease in price will increase total revenue. demand is elastic.

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