The first part of this statement is true. The second part, in bold, may not be. Choose true or false: According to the Capital Asset Pricing Model (CAPM), risky stocks pay a risk premium based on their level of risk. Thus, no risky stock should ever have a lower expected return than a risk-free security, even if the risky stock has a negative beta. 54 True O False and te For sensitivity analysis, you should not automatically change every variable by the exact same percentage from your base case estimate, because changing all variables by the same proportional amount might accidentally bias the results, True O False