True/False

1. All else equal, the larger the coupon and shorter the maturity, the smaller the sensitivity of a bonds price is to changes in interest rates.

2. A beta measures ______ risk. They also reflect the ______ and ______ risk of the firm.

3. A mutual fund's expense ratio is comprised of its overhead, management fees and 12b-1 fees. Loads are not included in the expense ratio.

4. The great thing about diversification, either random or efficient, is that one can lower one's portfolio risk without affecting its return.

5. Given the established parameters for the standard deviation and expected return in the Capital Market Line, better combinations for portfolio _______ and ______ are not possible!