True or False:

1. A positive alpha of a stock in CAPM model implies that: the stock's expected return is higher than the stock's actual return and the stock is overvalued. 2. Project hurdle rate is independent of project risk. 3. In risk and return framework, both diversifiable risk and non-diversifiable risk are rewarded by market. 4. A project's operating cash flow is independent of depreciation. 5. Cash is not included in net working capital adjustment in project valuation. 6. Financing costs such as interest exenses are not included in relevant cash flows. 7. Depreciation decreases cash flows by depreciation tax shield defined as the product of depreciation and tax rate. 8. A firm can reduce exchange and political risk by diversifying across countries. 9. Maximization of firm value does not necessarily maximize equity value.