In the following five questions, circle or state the correct answer. No explanations are necessary: they will not be graded! Question 1. Net working capital is a stock, and the change in net working capital is a flow. True False Question 2. The risk of a portfolio is equal to the average risk of the assets in the portfolio. True False Question 3. All portfolios that consist of risk-free asset and the maximal Sharpe ratio portfolio lie on a straight line. True False Question 4. For risky stocks, the standard deviation of return computed from monthly data is typically multiplied by 12 to report annual standard deviation. True False Question 5. An unlevered firm is a firm with strictly positive amount of debt. True False Question 6. The firm's return on assets equals the sum of the firm's return on equity and return on debt. True False