TRUE OR FLASE

1.If the expected rate of return on a stock exceeds the required rate, the stock should be sold as the price will fall.

2.If markets are semi-strong efficient, investors should not expect to earn returns above those predicted by the SMLbecause all public information is already reflected in prices

3.If a stock has a required rate of return r_s= 14 percent, and its dividend grows at a constant rate of 5 percent, this implies that the stock's dividend yield is 7 percent under the dividend growth model.

4.If a stock's dividend is expected to grow at a constant rate of 5 percent a year, the expected return on the stock is 5 percent a year.