please answer these questions

The following questions apply on one year yield curve

1. According.to liquidity theory investor Require a higher return for longer horizon.
2. Do you think the liquidity theory apply her? Explain why
3. Do you expect an inflation within this year? Explain
4. Do you expect the shequel would depreciate or appreciate within the short period. Explain

\begin{tabular}{|c|c|c|c|c|c|c|c|c|} \hline & \multirow{2}{*}{\begin{tabular}{l} Residual \\ Maturity \end{tabular}} & \multicolumn{3}{|c|}{ Yield } & \multicolumn{3}{|c|}{20 Price } & \multirow{2}{*}{\begin{tabular}{c} Last \\ Change \end{tabular}} \\ \hline & & Last & Chg 1M & Chg 6M & Last & Chg 1M & Chg 6M & \\ \hline= & 1 month & 4.634% & 12.1bp & 19.7 p & & & & 12Nov \\ \hlineI & 3 months & 4,560% & +3.4bp & +18.1bp & & & & 12Nov \\ \hline= & 6 months & 4.464% & 2.2bp & +1.6bp & & & & 12Nov \\ \hlineI & 9 months & 4.258% & 12.2bp & -200 bp & & & & 12 Nov \\ \hline= & 1 year & 4.167% & 17.2DP & -306 p & 96.00 & +0.17% & +0.38s & 12Nov \\ \hlinex & 2 years & 3.968% & 15.6bp & -0.9 tp & 92.51 & 0.30N & +0.01 & 12Nov \\ \hlinex & 3 years & 4.024% & 20.4 bp & +79 bp & 88.84 & .0.58% & .022% & 12Nov \\ \hlinex & 5 years & 4.130% & 20.1bp & +57.6 6p & 81.68 & 1.25% & 2.74k & 12Nov \\ \hlinex & 10 years & 4.419% & +36.1bp & +86.0bp & 64.89 & 3.41% & .7.94% & 12Nov \\ \hlinex & 20 vears & 4780% & f+40aba & + Ga 4 bn & 3945 & \begin{tabular}{l} 752% \\ 4.2...6 \end{tabular} & \begin{tabular}{l} +1721= \\ 1 \end{tabular} & 12N ny \\ \hline \end{tabular}