a. What is a fair game? Is a game in casino (as the roulette showed in lecture 3) a fair game? Is an investment in risk-free asset a fair game? Is an investment in stocks a fair game? Explain why yes or not.

b. What are the Market Efficient Hypothesis Theory and Behaviour Finance respectively? Explain

c. Why do duration match have better immunization effect on interest rate risk than that of maturity match?

d. What are Security Characteristic Line (SCL), Capital Market Line (CML) and Securities Market Line (SML)? Write down the model of each line and explain each of them explicitly.