.True or False: The expected rate of return is the weighted average of the possible returns for an investment. True or False: ABC Corporation issued and sold 10 shares of stock to Irene Investor, a private individual. This represents a secondary market transaction. 3. True or False: ABC Corporation issued and sold 10 shares of is represents a stock to Irene Investor, a private individual. Th secondary market transaction True or False: Rewarding executives for increasing quarterly earnings will motivate them to act in the long-term best interests of shareholders. 5. True or False: For the risk-return principle implies that the more risky a given course of action, the higher the expected return must be 6. True or False: The cash flow statement shows amounts that the company has earned but for which it has not yet received cash. 7. Which of the following factors is most important in investment decisions? A) The change in earnings before taxes. B) The change in gross sales revenue C) The change in net income. D) The change in after-tax cash flow. 8. In measuring value, the focus should be on A) cash flow B) accounting profits. C) time value of money D) earnings per share