Question: 4. Partal credit will be awarded when possible. For Problems 1 and 2, answer whether or not the statement is True (T) or False (F)

4. Partal credit will be awarded when possible. For Problems 1 and 2, answer whether or not the statement is True (T) or False (F) (2 points), and provide a brief (no more than three sentences) correct. explanation (2 points) of why your answer is Problem 1. (4 points) Suppose that the security prices are determined by the CAPM. The prices of both Stock A and Stock B are expected to be $100 in one year. These stocks do not pay dividends If stock A's volatility (in terms of its variance) is larger than Stock B's, then the price of S will always be less than that of Stock B in order to compensate for the greater volatility Problem 2.(4 points) A scurity with apostive CAPM alpha is overpriced

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