state whether the following statements are consistent or inconsistent with Portfolio Selection Theory (PST) and the CAPM, and briefly explain your answer. 30 points i. A security that exhibits only diversifiable risk has an expected return that exceeds the riskfree interest rate. ii. The Sharpe Ratio of a portfolio of two stocks decreases if the correlation between the return of these two stocks decreases (all other parameters are unchanged). iii. For the same beta level, stocks of small companies (low market capitalization) have higher returns on average than stocks of large companies (high market capitalization)