The ty matatine can be graphically represented by a line that connects the risk tree rate and the expected retum on the porta (Select the best choice below) O A False OB. The 2 he e fretum, or holding period retum, is equal to the holding period dollargain divided by the price at the beginning of the period O O The False 1 A a ba of 14 as 40% morality in returns than the average stock. F Tas ting is the reste demanded by investocated the required return also decreases Abon e wobec Othe they has a low soffanciallergeet) yes t ed for a greater portion of returns on common stocks than OF C o rdamerice of $125 will payudend this year of 1. The security market line can be graphically represented by a line that connects the nisk-free rate and the expected return on the market portfolio (Select the best choice below.) OA False OB. True 2 The realized rate of retum, or holding period retum, is equal to the holding period dollar gain divided by the price at the beginning of the period. O O True False 3. A stock with a beta of 1.4 has 40% more variability in returns than the average stock. O O True False 4. Ya bond's rating declines, the interest rate demanded by investors, called the required return, also decreases. O The O False 5. A firm's bond rating would be favorably affected if they have a low use of financial leverage (debt O O True False 6. Historically price appreciation, or capital gains yield, has accounted for a greater portion of returns on common stocks than didend payments O O True False il dividend share. The 1. ABC Corp. 5% preferred stock with a par value of $100 and a market price of $125 will pay an annual dividend this year of $12 per share O O True False