1. if you buy an asset of any sort, your gain or loss from that investment is called the return on your investment. True or False?

2. Depending on the degree of efficiency, we say that markets are either weak-form efficient, semi-strong form efficient, or strong form efficient. True or False?

3. The capital asset pricing model (CAPM) is the equation of the security market line showing the relationship between expected return and beta. True or False?

4. a portfolio weight is the percentage of a portfolio's total value that is invested in a particular asset. True or False?

5. Year-to-year returns on common stocks tend to be much less volatile that the returns on long-term government bonds. True or False?

Answer rating: 100% (QA)

Statement 1 True Statement 2 True ... View the full answer