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True or false 6.- The measure of beta associates most closely with unsystematic risk. 7.- The Modigliani-Miller Proposition I without taxes states a firm cannot
True or false
6.- The measure of beta associates most closely with unsystematic risk.
7.- The Modigliani-Miller Proposition I without taxes states a firm cannot change the total value of its outstanding securities by changing its capital structure proportions.
8.- According to the CAPM, the expected return on a security is positively and linearly related to the security's beta.
9.- There are no differences in the capital-structure of different industries.
10.- The variance of Stock A is .004, the variance of the market is .007 and the covariance between the two is .0026. The correlation coefficient is 0.4913.
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