True or False? 1. Compared to risky investments, the opportunity cost of capital is lower for safe investments. 2. All projects with an IRR greater than 18% are good projects, and we should undertake them. 3. IRR is a better capital budgeting tool than NPV. 4. Firms that are expected to have low dividend growth in the future are likely to have a high price-to-earnings ratio. 5. You can completely eliminate all risks by diversifying over a large number of assets. 6. Diversification works only when assets are perfectly uncorrelated. 7. More volatile stocks have a lower return. 8. Low standard deviation stocks always have low betas. 9. The CAPM predicts that a security with a beta of 0 will offer a zero expected excess return. 10. Prof. Sinvested $20,000 in U.S. Treasury bills. He also invested $20,000 in the S&P 500 Index. His portfolio will have a beta of 2.0.