Suppose that from a new checkable deposit, first national bank holds two million dollars in vault cash, eight million dollars on deposit with the federal reserve, and nine million dollars in excess reserves. given this information, we can say first national bank faces a required reserve ratio of percent

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