$2.$ Conceptual questions $(15$p$)$

$($a$)$ What do economists refer to when they talk about a $$separation theorem$?$ What

is being separated?

$($b$)$ What is the net$-$present$-$value rule?

$($c$)$ What is a financial risk premium?

$($d$)$ How do investors protect themselves against financial risk?

$($e$)$ In a rights offer, how is the market price of the right determined?