Answer True or False. For each false statement, also explain why the statement is false

1. Risk averse investors tend to have lower marginal utility when their consumptions are low.

2. Fama and French, in their 1992 study, found that rm size had better explanatory power than beta in describing portfolio returns.

3.Assume we are short one stock and want to hedge buy trading in a call option with a delta of 0.5. We need to buy 0.5 options.