Question 3 1 pts Which of the following statements is/are true? 1. The Sharpe Ratio and M2 always rank investments identically. 2. Sharpe Ratio and the Treynor Ratio always rank investments identically. 3. CAPM alpha and the Sharpe Ratio always rank investments identically O2 and 3 1, 2, and 3 1 and 2 1 and 3 2 only 3 only 1 only Question 4 1 pts Suppose investors demand a positive premium for holding long-term debt (that is, the liquidity premium hypothesis is true). Suppose you see that the term structure is flat. This means that: Expected return of debt at longer maturities is lower than it is for short maturity debt. Expected retum of debt at longer maturities is higher than it is for short maturity debt. Expected return of debt at longer maturities could be higher, lower, or the same as it is for short maturity debt. Expected return of debt at longer maturities is the same as it is for short maturity debt