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True or False 1. According to the CAPM, an assets return depends on the assets total risk. 2. In order for investors to earn a

True or False

1. According to the CAPM, an assets return depends on the assets total risk.

2. In order for investors to earn a fair return, the value of investments must rise as the interest rates rise.

3. From 1926 to 2016, large company stocks have earned the greatest average annual returns.

4. If a company just announced an unexpected increase in cost of goods sold, then the market price of stock should immediately increase to reflect the information.

5. The standard deviation and beta are both risk measures but are different because beta measures only unsystematic risk, whereas standard deviation measures total risk.

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