[1 mark x 10 = 10 marks] Question 3: State whether the following statements are true or false. 1) Risk-averse means that the investors choose the investments with a higher return regardless of their risk. 2) Diversifiable risk is the portion of an asset risk that is attributable to market factors that affect firm-specific. 3) Diversification always reduce risk provided the beta coefficient equal +1. 4) The market is in equilibrium when the market price equals the Fair Value of common stock. 5) Common stockholders often have the right, to purchase any additional shares sold by the firm. 6) When Investors become more risk-averse will lead the required rate of return to increase. 7) The beta coefficient is a relative measure of Non-Diversifiable risk. 8) Semi strong form of EMH means that all information, even inside information, is embedded in stock prices. 9) The limitations of CAPM is beta does not remain stable over time. 10) Common stocks are shares that allow holders to own a portion of the capital company with taking possession