True or False

11. Probabilities range from -100% to 100%.

12. When two states of the economy have probabilities of 50% and their possible returns are 8% and -10%, the expected return < 0%.

13. The standard deviation of the possible returns in #12 is more than 10%.

14. If a $20 stock sells for $30 after 4 years, its HPR > 40%.

15. The APR for the stock in #14 > 15%.

16. The EAR for the stock in #14 > 10%.

17. The average of 10%, 20%, -10% and 0% is less than 6%.

18. The standard deviation of the returns in #17 is more than 15%.

19. An equally weighted portfolio containing stocks with betas of 1.2 and 0.6 would have a beta < 1.

20. If a stock had a beta of 2 when market and risk-free returns were 10% and 2%, respectively, the expected return < 20%.