In the consumption-CAPM, under the assumptions that i) the representative agent has CRRA utility u(c)=C1/(1),>0,=1, and ii) consumption growth has a lognormal distribution, ln(c1/C11)N(s,s2), the log real risk-free rate is given by rf=ln()+g2z2/2 Which of the following statements is correct? The term captures the "precautionary savings effect". Consumption volatility reduces the real risk-free rate because there is less demand for the risk-free 3. asset in times of high consumption volatility. The real risk-free rate is determined by the (conditional) expectation of the marginal rate of c substitution of the representative investor. o. When risk aversion increases, the real risk-free rate must decrease