All of these are true or false:

1. The Security Market Line equation uses Coefficient of Variation, as a representation of risk, to modify the Market Risk Premium to determine the appropriate risk premium for an individual stock.

2. The Risk/Return Trade Off provides that investors require insurance in order to invest in risky securities.

3. When the expected return of a stock (r^) is less than the required rate of return (r_s) of that stock, as determined by the Security Market Line, that stock should be added to an investors portfolio.

4.If inflation is expected to remain constant over time, then the maturity risk premium will cause the yield curve of interest rates to be downwardly sloping.

5. A curve in which short term interest rates are higher than long term interest rates is known as a normal yield curve.

6.A curve in which short term interest rates are higher than long term interest rates is known as a normal yield curve.