Question $9($Mandatory$)(2$ points$)$

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The NPV method's assumption that cash inflows are reinvested at the cost of capital is generally more reasonable than the IRR's assumption that cash flows are reinvested at the IRR. This is an important reason why the NPV method is generally preferred over the IRR method.

Question $9$ options:

TrueFalse

Question $10($Mandatory$)(2$ points$)$

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If a bank compounds savings accounts quarterly, the effective annual rate will exceed the nominal rate.

Question $10$ options:

TrueFalse

Question $11($Mandatory$)(2$ points$)$

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When adding a randomly chosen new stock to an existing portfolio, the higher $($or more positive$)$ the degree of correlation between the new stock and stocks already in the portfolio, the less the additional stock will reduce the portfolio's risk.

Question $11$ options:

True or False