Part I: True or false (no explanation required)

If the current yield on a bond is higher than the coupon rate then its price is less than its par value.

A US equity mutual fund that last year had = 0 underperformed over that period.

A US bond mutual fund that last year had a Sharpe ratio = 0 underperformed over that period.

If we sell a fully depreciated asset for $10,000 and our tax rate is 30%, the resulting after-tax cash flow is $7,000.

The average EBITDA multiple for real estate is higher than for computer software.

A firm will increase its market value only if its EVA > WACC.

On November 7, 2013, the Twitter IPO ended the day at $44.90. In determining the proper price for a Twitter share a reasonable approach would be to use a net income multiple.

Portfolio C is composed of equal investment in (normally distributed) assets A and B. The of C is the average of the betas of assets A and B.

Portfolio C is composed of equal investment in (normally distributed) assets A and B. The Sharpe ratio of C is the average of the Sharpe ratios of assets A and B.

As the maturity date for a zero coupon bond approaches, its price normally rises.