Which of the following are true about short selling an equity market index and leaving your sale proceeds in cash? Circle all that apply

i)The equity premium puzzle means that the equities you are selling on average have higher expected returns relative to treasury bills you are purchasing

ii)Under the Capital Allocation Line, you will end up with a worse portfolio in mean and standard deviation terms than it would be possible to get if you took a long position in the market, assuming the expected return on the market is greater than that of Treasury Bills

iii)Under the Shiller argument about discount rates, shorting the market can generate high expected returns if recent market returns have been large and negative

iv)Under the Capital Allocation Line, this will produce a lower standard deviation than an investor who allocated all his money to the risk-free asset