1. True or False. Briefly explain your answers. a) Because 15 out of 1000 mutual fund managers outperform the median mutual fund for each of the previous 6 years, at least some of these 15 portfolio managers must be skilled at picking stocks. b) If diversification reduces a portfolio's standard deviation, then it also reduces a portfolio's expected return. c) If the fraction of human capital in an individual's total wealth portfolio falls with age, then the optimal fraction of that person's financial wealth allocated to stocks will decline. d) If the weak-form of market efficiency is satisfied, then the random walk hypothesis is also satisfied. e) In the absence of arbitrage opportunities, the price of an American put option is at least as great as the price of an otherwise identical European put option. f) Historically, the data presented in the textbook and during class indicates that the average equity mutual fund holding stocks listed in the United States outperformed the Wilshire 5000 index