5. The price movement pattern demonstrated by the light blue line on slide #126 shows the market is efficient.

True

False

6. All else equal, as the bond yield decreases, the bond value increases.

True

False

7. A zero-coupon bond does not have any reinvestment risk.

True

False

8. If insider trading does not generate abnormal returns, the market is strong-form efficient.

True

False

9. An efficient portfolio has the lowest risk and the highest return.

True

False

10. Given two bonds identical but for maturity, the longer-term bond will carry lower interest rate risk than the shorter-term bond.

True

False