true or false questions

5. The total amount of interest earned on a lump sum investment will exactly double if the amount of time is exactly doubled, everything else equal. 6. An example of an annuity is the interest received from bonds. 7. The future value of an annuity will increase if the interest rate goes up, but the Present value of the same annuity will decrease as the interest rate goes up. 8. The benefits of diversification occur as long as the investments in a portfolio are not perfectly positively correlated. . 9. Diversifying among different kinds of assets is called asset allocation. 10. Stock A has an expected return of 12% with a standard deviation of 5%. Therefore, if returns are normally distributed, approximately two-thirds of the time the actual retum will be between 7% and 17%. 11. The required rate of return for an asset is equal to the risk-free rate plus a risk premium