True or False. Briefly explain your answers.

a) If the dividend-price ratio is stable in the long run, then a low dividend-price ratio today predicts either high returns or low dividend growth in the future.

b) Since 250 stocks have estimates of Jensen's alpha that are statistically different from zero at the 5% level of significance, the CAPM does not provide a valid description of the relationship between risk and expected return for the stock market.

c) If the nominal interest rate is positive, then the real interest rate is also positive.

d) The random walk hypothesis states that a stock's price moves randomly and is not determined by fundamentals such as expected future dividends or earning