answer by yes or no

1. The bond provides an annual dividend while the stock does not guarantee any annual income. 2. In case of bankruptcy of the company, the preferred shareholders have priority when reimbursing debts compared to the bondholders.

3. To realize the promised return on a bond at the time of its purchase, the bond must be held until its maturity and the coupons reinvested at this same rate of return.

4. The covariance between two variables is between +1 and -1.

5. An effective interest rate is capitalized only once per period, while a nominal interest rate may be capitalized multiple times per period.

6. In the case of discounting cash flows that grow at a constant rate (g) in perpetuity, the growth rate (g) must be less than the discount rate (r).

7. The variance of a portfolio composed of two securities reaches its maximum at a zero correlation rate between the two securities.

8. For a given nominal interest rate, the more the number of capitalizations increases, the higher the effective rate.

9. The NPV is based on the principle that a dollar today is worth less than a dollar tomorrow.

10. The NPV and the updated payback always give the same recommendation on the acceptance or rejection of the project.