Behavioural finance:

In each point below, is the statement/conclusion true or false? Briefly (in 1-3 sentences), justify your answers.

a) A high price-dividend ratio (above 50) on the aggregate stock market means that there is an irrational bubble.
b) In mainstream finance models, individuals perfectly smooth consumption across states.
c) Surveys of investor expectations of US stock market returns provide evidence against rational explanations of the predictability of the equity premium based on the dividend-price ratio.
d) The available evidence suggests that subsidies are an effective way to encourage saving for retirement.
e) If all individuals are rational, the Consumption Capital Asset Pricing Model (CCAPM) holds