Question: Help me understand the following, Lets suppose two assets, A and B, are equally liquid and are expected to pay identical dividends, but B is

Help me understand the following,

Lets suppose two assets, A and B, are equally liquid and are expected to pay identical dividends, but B is considered more risky than A. Which asset will have the higher price and which will have the higher rate of return? Explain the reasons why. Make use of the demand and supply diagram for assets to illustrate and support the answer.

The price of gasoline drops dramatically and unexpectedly. What is likely to happen to price and quantity in the market for automobiles? Use the 3-step method of analysis. Carefully explain each step of the analysis.

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2. Information that comes most readily to mind (availability).

3. An initial value (anchoring).

4. Similarity (representativeness).