Question: Please answer True or False for the following: 11. When drawing the SML, the risk measure is the standard deviation. 12. Stocks plotting below the

Please answer True or False for the following:

11. When drawing the SML, the risk measure is the standard deviation.

12. Stocks plotting below the SML are undervalued.

13. The CAPM assumes that there are no transaction costs when buying or selling.

14. If the RFR is 5% and the market return is 13%, the expected return for a stock with a beta of 2 is 21%.

15. If a stock improves from $10 to $11 when its expected return is 13%, the stocks alpha equals 2%.

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