Question: For Problems 1-3, answer whether or not the statement is True (T) or False (F), and provide a brief explanation of why your answer is

For Problems 1-3, answer whether or not the statement is True (T) or False (F), and provide a brief explanation of why your answer is correct. Problem 1. (T/F) If the agents in the economy have different utility functions the market portfolio is not efficient Problem 2. (T/F) Suppose that the security prices are determined by the CAPM. The prices of both Stock A and Stock B are expected to be $100 in one year. These stocks do not pay dividends. If stock A's volatility (in terms of its variance) is larger than Stock B's, then the price of Stock A will always be less than that of Stock B in order to compensate for the greater volatility, Problem 3. (T/F) Market clearing implies that there is no excess demand or supply. Thus, prices should not change over time

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