T/F

1. A 10 year Treasury Inflation Protected Security (TIPS) yields 0.1% while a 10 year regular government bond yield 1.4%.

2. Passive investing assumes that markets are efficient.

3. According to Modern Portfolio Theory, the best portfolio in the efficient frontier (set) is always the one with the lowest risk.

4. Using the Dividend Discount Model (DDM) if the growth rate of earnings decreases then the stock price should tend to fall.

5. In the Dividend Discount Model (DDM) if interest rates go up this will tend to decrease the value of stocks.

6. If a stock price is very volatile, a high standard deviation, this is a negative feature for option prices.