I Part one: True or False This part has 6 questions for each question, there is an argument, please make your judgettent about whether this argument is Time or False. If you think it is fake, then briefly write the usem (4 points for each question, totally 32 points) 1. The maximum profit of writing a CDS (a kind of low insurance is the writing price of the CDS 2. Using asset growth anomaly an example, the abnormal return can be estimate the intercept from repressing the firm level retums on the main indictor tie asset prowth ratio and Fama French factors 3. Since CE-EUX for nisk avene people. CE larger than 4. According to the CAPM. any portfolio that lies on the Capital Market Line (CMT) haheta equal to the fraction of the portfolio imated in the market portfolio We can understand the shareholders payoff from the pective of posicing a call of the firm and the det holders pool like a putetin and are free bond 6. According the martingale simption, based on the current information set the expected future stock priceps to the current stock price, therefore the equilibrium price AS over time 7. The CAM implies that that investesweld hold the part of the animation of risky at the market portfolio and risk-free met along ML capital market line & According Fan and French (9. the variation of the related to streptely correlated with an, but the variation of heart to compensated by