idicate for true and "F for false in the column to the right. Read all statements erpetuity must always have a higher value than a common stock because dividends are expect to be paid forever 3s When interest rates rise, bond and stock values must fall. 36.You should always choose the investment with the highest APR (annual percentage ratel) 37.A stock's required return is equal to the dividend growth rate plus the capital gains yield number of compounding periods differs. 38.For lump sums, present values will increase as 't' increases. 39.The dividend yield must always be greater than 0%. 40.Diversification can eliminate unsystematic risk. 41.The market capitalization of a stock is the total market value of a stock. 42.Diversification can reduce standard deviation. 43.Diversification can reduce the level of systematic risk. 44.A stock's capital gains yield will always be positive 45.A stock that has a holding period return that is greater than the fair return according to CAPMis overvalued and you should buy it. 46.Under the dividend growth model, the dividend growth rate is the same as the price growth rate. 47.According to the CAPM, as the risk-free rate increases, returns on stocks should increase. 48.The value of a zero-coupon bond must atways be less than $1000. 49.You have calculated the value of an investment to be $95. If it costs $100, you should buy it. 50.A stock with a payout ratio of 0.70 MUST have a higher dividend yield than a stock with a payout of 0.50. 51.A callable bond with a coupon rate of 8% is likely to be called when yields are 6%. 52.According to the CAPM, as the risk-free rate increases, stock values should increase. 53.For annuities, present values increase as 't increases 54.Private Mortgage Insurance (PMI) protects borrowers in case they are unable to m payments 55. Stock A has a beta of 2. Stock B has a beta of 8. Therefore, it must be true h unsystematic risk than Stock B