Your friend who took some investment classes is looking at the following simplified one period present value formula (assume that one period is valid in the model): CF Price (Present Value) 1+E(r) He/she is making the following statement: "The formula indicates that when the expected return E(r) decreases (even going negative) the price (PV) will increase. Therefore, if there is any news on an asset's price increase today, it should mean the price increase has been caused by the decrease in expected return." Which of the following statement(s) is CORRECT? i. It is the price increase that causes the decrease in expected return. ii. The asset's price could have increased due the new information on increase in CF. iii. If CF is still fixed, decrease in E(r) would mean that more investors will try to sell the asset. Thus, the price increase should reflect the increase in the selling demand