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. Given fair pricing, the expected price appreciation return over an initial anticipated one-year holding period must be equal to the required return minus the dividend yield.

true or false

3. Given fair pricing, the expected return equals the required return.

true or false

4. In estimating the cost of equity based on a company's bond yield plus an equity risk premium, the equity risk premium is the same as the market risk premium.

true or false

5. Greater complexity ensures greater explanatory power, therefore multifactor models are superior to single-factor models in estimating costs of capital.

true or false