1. Negative beta for a company suggests the company will return less than the risk-free rate during a down market and return more than the risk-free rate during an up market. True or False

**********************************************

2.Use Hamada's equation to find the unlevered beta (_U) given the following:

Levered beta (_E) = 0.92

Weight of debt (D) = 37.00%

Tax rate (t) = 25.00%

(Enter your answer as a number with four decimal places, like this: 9.1234)

**********************************************************

3.Macroeconomic factor models consider economic variables which affect the expected future cash flows of companies to determine the appropriate discount rate. True or false