Question: answer all please Part 2: True or False Note: If the statement is not correct all the time, mark it false. Circle your answer. Astock

answer all please Part 2: True or False Note: If the statementanswer all please

Part 2: True or False Note: If the statement is not correct all the time, mark it false. Circle your answer. Astock on the SML must have an IRR of 0%. Greater compounding frequency will result in a higher present value. TF If a bond's coupon rate exceeds its YTM, the bond must be trading at a premium to face value. T F It is impossible for a project to have a positive NPV if the IRR is less than the required return. T F For all positive periodic rates, EAR can never be less than APR. T F If the Payback Period equals the project's life, NPV must be zero. F When a bond's YTM goes up, its coupon rate must increase as well. F When a capital investment has multiple cash outflows, the NPV can't be trusted. TF If NPV is negative, IRR must be negative also. TF Diversifying may not always reduce the risk of a portfolio. T F If the Profitability Index is greater than 1, the NPV must be positive. TF f a company announces record earnings, its stock price will go up. T F If a stock is below the SML, it must be too expensive TF A discount retailer should have a B less than 1. T F If you are earning a 6% return on your investments, 6% must be your required return. T Another student copied my answers

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!