1. If you invest in a portfolio whose Beta exceeds the markets, your expected return will be less than or greater than the expected market return. Which is it?

2. If in general interest rates rise, the required return in the CAPM will fall / rise. Which is it?

3. When the Macro-economic outlook worsens, Credit Spreads narrow / widen. Which is it?

4. True or False: Stocks differ from bonds in that stocks do NOT display convexity properties.