TRUE OR FALSE. PLEASE ONLY ANSWER 5-9.

1. If the stock return is 16%, the market return is 10%, the RFR is 2%, the

market beta is 1.0 and the stock beta is 1.4, the stocks T > 8%.

2. Using the values above, the markets T < 10%.

3. If the stock above has a standard deviation of 40% and the market

above has a standard deviation of 20%, the stocks S > 0.25.

4. Using the values in #3, the markets S < 0.50.

5. According to Treynor, the stock above is overvalued.

6. According to Sharpe, the stock above is overvalued.

7. The Jensen alpha value for the stock above < 2%.

8. According to Jensen, the stock is undervalued.

9. Famas net selectivity for the stock about < 0%