1. In the Fama-French model, many practitioners and researchers believe the return premiums to small size and value arise from market inefficiencies instead of as compensation for bearing types of systematic risk.

true or false

2. Arbitrage pricing theory (APT) models simplify the reasoning represented by the CAPM.

true or false

3. Cash flows should be discounted by the percent return required by the party who will receive the benefit of those cash flows.

true or false

4. The FamaFrench model is used more often than the CAPM to estimate the cost of equity.

true or false

5. Regression of the return on a company's stock versus the return on the market is often called an unadjusted or raw historical beta.

true or false