Question: Hello please help to answer these Is it true, false or uncertain ? Please also provide explanations. 1 If risk-free interest rate is higher than

Hello please help to answer these

Is it true, false or uncertain ? Please also provide explanations.

1 If risk-free interest rate is higher than the expected rate of return on global minimum variance portfolio. the tangenc'g,r portfolio is an inefcient portfolio, and two fund separation does not hold. 2 Assume Fama-French's three factor model holds. The firm A and the rm B are characterized by the same B.-"M ratio and CAPM beta. If they merge and become the rm C. the expected rate of return on newly created stock C should be lower than both stock A and B

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