Market risk refers to the tendency of a stock to move with the general stock market. A stock with below-average market risk will tend to be more volatile than an average stock. and its beta will be more than 1.0. (True/False) True False Question 6 (4 points) The risk-free rate represents the intercept, and the market risk premium represents the slope of the security market line (SML). (True/False) True False Question 7 (4 points) The interest rate for a short-term treasury bond (T-bill) can be conventionally calculated as the sum of nominal (quoted) risk-free rate, inflation premium (IP). default risk premium (DRP), and liquidity premium (LP). (True/False) True False