6. Valuation of stock depends on past dividends.

	a.	True
	b.	False

7. If the valuation of a stock is $10 and its price is $13, the investor should establish a short position in the stock.

	a.	True
	b.	False

8. The required return for an investment in a stock increases if the firm's beta declines.

	a.	True
	b.	False

9. An increase in the required return on the market will tend to decrease stock valuations.

	a.	True
	b.	False

10. The P/E ratio measures a stock's price relative to the firm's equity.

	a.	True
	b.	False