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19&20) 23&24) 26) 28&29) (1 19) The greater the DOL, the greater the protection against operating losses during economic downturns. True O False (1P 20)

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(1 19) The greater the DOL, the greater the protection against operating losses during economic downturns. True O False (1P 20) A market index is used to measure performance of a broad-based portfolio of stocks. O True O False TI inte 23) Risks that are attributable to a single firm: are called market risks cannot be diversified away 0 are called specific risks o tend to cause stocks to move together 24) Which one of these is the safest investment? O Corporate bonds O Common stock U.S. Treasury bills O Preferred stock O O All of the above are equally safe (1 pts) 26) Standard deviation and variance are unrelated in risk analysis. O True O False (1 pts 28) The market risk premium is the difference between the return on common stocks and the risk-free interest rate. O True O False (1pts) 29) The expected return on an investment provides compensation to investors both for waiting and for worrying. . O True False

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