3. Answer whether each of the following statements is correct and explain your argument. Total: 20 marks. (a) According to CAPM, the expected return of a risky asset could equal the risk free rate. (5 marks ) (b) According to CAPM, the expected return of a risky asset increases with its variance. (5 marks) (c) According to the separation property, the proportion to be invested in the optimal risky portfolio for an investor depends on the investor's personal preference. (5 marks) (d) A less risk-averse investor has a steeper indifference curve for the utility function