1. Systematic risk is diversifiable by holding a large portfolio 2. Using technical analysis is consistent with a belief in the semi-strong market efficiency hypothesis 3. According to CAPM theory, the market portfolio is on the efficient frontier 4. The Sharpe ratio of the tangency portfolio is maximized if short selling is not allowed 5. Limits to arbitrage facilitate market efficiency 6. Absence of arbitrage opportunities requires all investors to be rational utility maximizers 7. CAPM theory provides a guide for pricing idiosyncratic risk 8. Framing can result in different answers to equivalent questions 9. CAPM rules out positive alphas, but allows for negative ones 10. Two uncorrelated stocks can be combined to produce a risk-free portfolio