Assume that the assumptions underlying the standard CAPM hold. Indicate whether each of the following statements is true or false.

e. A well-managed firm will have a lower beta than a poorly managed firm.

f. The market portfolio is efficient. Therefore, it contains only the best stocks in the market.

g. A risk-seeking investor should hold the riskiest stocks in the market, and a risk-averse investor should hold the safest stocks.

h. If the riskless rate increases, the slope of the capital market line will decrease.