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3. (5 points) Following the logic of CAPM, which assets should have higher price? Please indicate the correct answer and explain in max 2 lines.

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3. (5 points) Following the logic of CAPM, which assets should have higher price? Please indicate the correct answer and explain in max 2 lines. 1) Assets whose returns go up in booms. 2) Assets whose returns go up in recessions. 3) Assets that provide a relatively constant dividend stream. 4) Assets whose returns are uncorrelated with the market and therefore provide diversification. 5) It cannot be determined

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