8. Suppose that we see 5 stocks in a market. To achieve the highest Sharpe ratio available in the market, we calculate the Sharpe ratio of each stock and invest 100% of funds in the particular stock with the highest Sharpe ratio.

True

False

9. An investor holds a bond issued by a corporation. It is possible that the investor may not receive the full amount that the company has promised to pay back.

True

False

10. Investors are indifferent among all points on the capital allocation line.

True

False