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TRUE OR FALSE: Securtiy analysis is typically conducted with an eye toward identifying mispriced securities in the hopes of generating returns that more than adequately compensate the investor for risks being taken.

TRUE OR FALSE: Unavoidable risk" is that which cannot be "diversified away" by merely holding a portfolio of many different securities.

TRUE OR FALSE: Fundamental analysisattempts to evaluate a company's current market price relative to projections of the firm's future earnings and cash-flows.

TRUE OR FALSE:The final product of security analysis is a recommendation to buy, sell or hold the stock of a particular company.

TRUE OR FALSE: In making a recommendation to buy or sell a stock, the analyst need not be concerned with the investment time horizon required to capitalize on the recommendation.

TRUE OR FALSE: Predicting the likelihood that a company could facefinancial distressis not part of the typical credit analysis process.

TRUE OR FALSE:Debt financing focuses management on the creation of value, thereby reducing conflicts of interest between managers and shareholders.

TRUE OR FALSE:Firms with a high concentration of intangible assets is less likely to be highly leveraged that firms whose assets are mostly tangible in nature.

TRUE OR FALSE:In private debt markets, credit analysis rarely involves any explicit attempt to estimate the value of the company's equity.

TRUE OR FALSE:In order to be consideredinvestment grade,a company must achieve a debt rating of "B" or higher.