Explain whether the following statements are true or false. In each case, provide justification for your answer:. Explain whether the following statements are true or false. In each case, provide justification for your answer: ? In a perfect capital market, expected returns on all bonds must be equal to the risk-free (T-bill) rate. ? In a perfect capital market with risk-neutral investors, expected re- turns on all bonds must equal the risk-free rate.
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