Define and explain investment decisions in the Capital Market with respect to expected returns, discounted cash flow, and classical utility theory. Give specific examples.STRUCTURE– Contains a thesis statement that is connected to the questions– Includes an enumerating sentence detailing the direction and structure of the answer or questions– Body paragraphs follow enumerated structure and support the general thesis– Answer is Logically Organized 1. Easily Followed 2. Effective, and smooth transitions– Conclusion or summary is providedCONTENT– Defines and Demonstrates the major concepts or theories relevant to the question or questions that was discussed in class or part of the assigned readings.– If relevant provides graphical examples and demonstrates the student understands the example and application to theory, concepts or definitions described above.– If relevant provides formulaic examples, and demonstrates the student understands the formulas and their connections to the major concepts, theories, or definitions described above.– Demonstrates the connections between the concepts, theories or definitions in a logical consistent fashion.– Where relevant discusses the strengths and weaknesses of the various concepts, theories, and definitionsEssay Questions (each 1 page)1. Define and explain investment decisions in the Capital Market with respect to expected returns, discounted cash flow, and classical utility theory. Give specific examples.2. Define and explain the dialectic process with respect to money and financial innovation. Give some specific historical examples.3. Define and explain asymmetric information its impact to adverse selection, moral hazard, conflicts of interest, the separation theorem, and how financial intermediaries play a role.4. Define and explain the major theories of interest rate behavior.5. Define and explain the functions of money and how it reduces transaction costs – give a numeric example of a barter economy.