Question: Please answer for me ASAP True/False and Explain. These instructions apply to the true-false questions below. Partial credit given if the true/false answer wrong, but

 Please answer for me ASAP True/False and Explain. These instructions apply

Please answer for me ASAP

True/False and Explain. These instructions apply to the true-false questions below. Partial credit given if the true/false answer wrong, but the intuition is correct. No credit is given if the True/False answer is correct, but the reasoning is wrong. Indicate whether each of the following 3 statements is TRUE or FALSE by checking the box next to the word TRUE or FALSE on your answer sheet and then providing an explanation why (explain the economic intuition for why your answer is correct) in the 8 lines below on the exam template. An incorrect or missing reason/explanation yields ZEROMARKS. B1a. If we observe that yields on short-term government debt are higher than yields on longterm government debt then we should expect a recession in Australia. [5 marks] B1b. If the liquidity premium hypothesis is true, then forward rates are an unbiased measure of investors' expectations about future interest rates. [5 marks] B1c. The risk-free rate is 5% and the beta of a risky stock is zero. It would be consistent (and possible) in a market where the CAPM holds for the market to experience a realised return of 10% over the next year, while the risky stock has a realised return of 33% over the next year. [5 marks] True/False and Explain. These instructions apply to the true-false questions below. Partial credit given if the true/false answer wrong, but the intuition is correct. No credit is given if the True/False answer is correct, but the reasoning is wrong. Indicate whether each of the following 3 statements is TRUE or FALSE by checking the box next to the word TRUE or FALSE on your answer sheet and then providing an explanation why (explain the economic intuition for why your answer is correct) in the 8 lines below on the exam template. An incorrect or missing reason/explanation yields ZEROMARKS. B1a. If we observe that yields on short-term government debt are higher than yields on longterm government debt then we should expect a recession in Australia. [5 marks] B1b. If the liquidity premium hypothesis is true, then forward rates are an unbiased measure of investors' expectations about future interest rates. [5 marks] B1c. The risk-free rate is 5% and the beta of a risky stock is zero. It would be consistent (and possible) in a market where the CAPM holds for the market to experience a realised return of 10% over the next year, while the risky stock has a realised return of 33% over the next year. [5 marks]

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