34: A perpetuity might have a lower value than a common stock although dividends are expected to be paid forever? TRUE OR FALSE

35: The Dow Jones Industrial Average is a stock market index that holds 13 stocks. TRUE OR FALSE

36: If you make more than the required payment on your mortgage, the time that it will take you to pay off your mortgage will decrease and the total interest paid on your mortgage will decrease? TRUE OR FALSE

37: Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or decrease. US home construction drops 30.2% in April as virus rages.

		Systematic, Increase
		Systematic, Decrease
		Unsystematic, Increase
		Unsystematic, Decrease

38: Bond A is a par bond and Bond B is a discount bond. All else equal, which bond has the lower coupon rate? A OR B OR A=C

39: By combining assets into a portfolio_______.

	A.	you can eliminate systematic risk.
	B.	you can reduce total risk by eliminating systematic risk.
	C.	you can reduce total risk by reducing unsystematic risk.
	D.	you can increase return by reducing unsystematic risk.