1. (a) Recall the Fisher separation theorem and the conditions under which it holds. Explain (b) Discuss the implications of the Fisher separation theorem for project evaluation and the (c) Explain whether the theorem continues to hold, and how welfare is affected, if we consider the intuition of the result. It is possible to use graphs. [10 points organisation of the firm. It is possible to use graphs. 5 points] the following alternative assumptions. It is recommended to use graphs. i. Agents cannot borrow and lend at the same rate (all else equal). [5 points] ii. There is a cap on how much agents can borrow (all else equal). [5 points]