1)
In general, what determines the market price of anyfinancial asset? What determines its intrinsic value? How are thetwo related in the absence of mispricing?
2) Assuming a constant real return, why are investorsworse off when the inflation rate is high
3)
Why do we measure the risk of an asset by the standarddeviation of its returns?
4)
Why do we consider only portfolios on the efficientfrontier when trying to find the optimal riskyportfolio?
5)
What is the separation property and why does itapply?
