1. If an investor holds a stock for six years, the value at the end of six years will be the initial cost times (1 + geometric average return)to the sixth power.

   True

   False

2. If an investor holds a stock for three years, the value at the end of three years will always be the initial cost of the stock times (1 + arithmetic average return) to the third power.

   True

   False

3. Investments in emerging markets have higher volatility than do U.S. Stocks.

   True

   False

4. Investors are always rewarded for taking higher risk with higher realized returns.

   True

   False

5. True

   False