Question
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. |
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2. In order for investors to earn a fair return, the value of investments must rise as the interest rates rise. |
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3. From 1926 to 2016, large company stocks have earned the greatest average annual returns. |
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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. |
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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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