the following are true and false.

True False O O 1. RETURN - LOSS / ORIGINAL COST 0 0 2. If Stock X has a higher profit than Stock Y, it is not fair to assume that Stock X has a higher HPR. 3. A quarterly return of 3% equates to an EAR of 12%. 0 0 O 0 4. Large company stocks tend to have larger standard deviations than small company stocks. 5. In a normal distribution, about 95% of all observations fall within two standard deviations of the average. 6. It is not possible to earn more than 100% in a single year. O O O O OOO O 7. In the CAPM equation, stocks with larger betas will have lower expected returns. 8. The SML intersects the risk axis when graphed. O O 9. The market risk premium would be the same for stocks with different betas. O 10. It is fair to say that systematic risk can be diversified away