Question $6(1$ point$)$

According to the Capital Asset Pricing Model, higher investment risk, however it is

measured, translates into higher required rates of return.

True

False

Question $7(1$ point$)$

An investment opportunity promises a stated interest rate of $6$ percent, with

semiannual compounding. Which of the following statements is most correct?

The effective annual rate is greater than $6$ percent

The periodic rate is less than $3$ percent

The periodic rate is greater than $3$ percent

The effective annual rate is less than $6$ percent