True and False (1 point each) For the true and false problems, please write the entire word True or False in the space provided. 1.) A high dividend paying company may appear overvalued when using the PEG ratio. 2.) The long/short equity hedge fund strategy typically underperforms in bull markets. 3.) High growth firms typically have high levels of debt-to-equity. 4.) Average sector or industry multiples can expand during a bull market. 5.) For the Gordon Constant Growth DDM, dividends and stock price grow at the same rate. 6.) As the PVGO increases, both the price and P/E ratio will decrease. 7.) The inverse of the P/E ratio is called the earnings yield. 8.) Any size stock is a potential investment with the CAN SLIM strategy. 9.) If a company has no debt, the return on assets will equal the return on equity. 10.) A return on equity screening strategy will often generate a small number of stocks. 11.) The CAN SLIM investment strategy utilizes both fundamental and technical factors. 12.) The Piotroski High F-Score starts with low price-to-book value stocks. 13.) The dividend discount model is not very sensitive to the growth rate input. 14.) Investors should hold a stock when it is trading below its rational price. 15.) Higher beta companies are less sensitive to the business cycle. 16.) Hedge fund replication products can be built using commonly traded ETFs. 17.) The Dreman investing approach is one that seeks stocks that are out-of-favor. 18.) Higher price-to-book value companies are believed to be safer investments. 19.) The Magic Formula investment strategy utilizes the enterprise value during screening. 20.) Book value represents a price floor for a company. 21.) The Lakonishok investment strategy is a longer-term strategy that requires patience. 22.) If properly invested, lower dividend payments can result in higher future dividends. 23.) Portfolio turnover is low when using a Dogs of the Dow investment strategy