Question: Part Please indicate T for true and F for false in the column to the right. 34.Stock A has a beta of 2. Stock B
Part Please indicate "T" for true and "F" for false in the column to the right. 34.Stock A has a beta of 2. Stock B has a beta of unsystematic risk than Stock B 35.A perpetuity must always have a higher value than a the right.Read all atements careful 8. Therefore, it must be true that Stock A has more to be paid forever. common stock because dividends are expected 36.When interest rates rise, bond and stock 37.You should values must fall. always choose the investment with the highest APR (annual percentage rate) even it the num ber of compounding periods differs. 38.A stock's required return is equal to the dividend growt rate plus the capital gains yield 39.For lump sums, present values will increase as 't increases. 40, The dividend yield must always be greater than 0%. 41.Diversification can eliminate unsystematic risk. 42. The market capitalization of a stock is the total market value of a stock. 43.Diversification can reduce standard deviation. 44. Diversification can reduce the level of systematic risk. 45.A stock's capital gains yield will always be positive. 6.A stock that has a holding period return that is greater than the fair return according to CAPMis overvalued and you should buy it L diuidond arowth rate is the same as the price growth rate
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