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could i have help with these true and false questions. please give reasons why, thank you Styles 1. Consider the single-factor APT. Stocks A and

could i have help with these true and false questions. please give reasons why, thank you image text in transcribed
Styles 1. Consider the single-factor APT. Stocks A and B have expected returns of 12% and 1996, respectively. The risk-free rate of return is 3% Stock B has a beta of 12. If arbitrage opportunities are ruled out, stock A has a beta of 0.47 False True 2 XRCO has a beta of 1.7. The annualized market return over the last year was 13% and the risk-free rate over the same period was 3%. You also observed that XRCO had an annualized return of 20%. Assuming that markets are efficient, this suggests that bad news about XRCO was announced over the period True False 3. Securities with a positive Jensen's alpha are overpriced True D False 4. You can reduce the volatility of a portfolio through diversification, but you can never have a portfolio that has lower volatility than the least volatile share in the portfolio True D False 5. If two shares have a beta of one, they must be positively correlated with each other. True False 6. In a short sale transaction, the fender's revenue is proportional to the profit of the short seller. True False

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