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Part 1 True or False Type your response in the yellow-highlighted cell below each item as True or False. Question 1 Free cash flow calculation

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Part 1 True or False Type your response in the yellow-highlighted cell below each item as True or False. Question 1 Free cash flow calculation is possible using only the data in the Cash Flow Statement. 2 points Your response: Question 2 If you are interested in a company's ability to meet its short-term obligations, you should 2 points calculate its equity multiplier. Your response: Question 3 Beta is an appropriate measure of risk when the investor holds an efficiently diversified 2 points (or well-diversified) portfolio. Your response: Question 4 Assume that Stock A has a standard deviation of 0.20 and Stock B has a standard 2 points deviation of 0.15. It is possible for Stock B to have a higher required rate of return than Stock A. Your response: Question 5 Even when the correlation between two stocks is +1.0, if the securities are combined in 2 points the correct proportions, the resulting 2-asset portfolio will have less risk than either security held alone. Your response

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