Answer True or False for each statement

Answer all true or false questions, 1 Asset allocation is the process of deoding how to distribute an investor's wealth among different asset classes for investment purposes 2 Risk objectives should be based on investors ability and willingness to ignore nsks. 3 Capital de preciation is the growth of the portfolio in real terms to meet wture needs and a ver inflation 4 Unrealized capital gains reflect the price apprecia ton of investment assets that have been sold with gains. 5 As an invesbr you want to minimize the returns for a given maximum level of risk 6 Covariance is a measurement of the degree to which wo asset desses move together relative to their individualmean values over tim 7 The eficient tontier represents that set of portfolios with the maximum rate of return for everygiven level of risk 8 Capital asset pricing model (CAPM) wil allow you b determine the required rate ofreturn for any risky asset and therefore the price 9 The purpose of diversification is to reduce the standard deviation of an investment 10 The expected rate ofretum of a risk asset is determined by the risk tree rate minus a marketnisk premium br the individual asset 11 The market for fixed-income securities is substantially larger than equity because corporations tend to issue more common sbd 12 If the current bond yield is less than the bonds coupon rate, bond will be priced at a discount bits par value 13 The yield to maturity of a bond assumes the bond is sels at maturity and coupons are reinvested at this rate of return 14 A rising yield curve means that yields on kong-term matures are lower than short maturites 15 The dura ton of a coupon bond is affected by its cash fows. 16 The formula for calculation abond price change using duration is modifad duration times the interest rate change times the bond price 17 Stock portblos generally produce both less return and less volatility than found in bond portblos in the long-term 18 A growth investment focus is a por told that has stocks that have grown steadily and have morentur, 19 Knowing the business model management and product potential of a company, bo be invested in, is crucial to investment access 20 Portfolio construction requires understanding the invesbr's goals, risk tolerance prudent diversification and proper asset selection