True False 1. The HPR can never be negative. O 2. If a stock grows from $100 to $120 in one year, the HPR > 100%. O 3. The HPY in the preceding problem > 100%. 4. If a stock grows from $100 to $120 in three years, the AHPY 10%. 8. Ending market values are used for the market weights of the stocks in a portfolio when calculating a portfolio return. 9. If a stock has a 60% probability of returning 20% and a 40% probability of losing 20%, the expected return 12%. 12. It is fair to think of T-bills as the RRFR. 13. If the NRFR = 9% and the inflation rate is 4% = 2%, the RRFR > 12%. 14. The arithmetic and geometric means can never be the same. 15. It is easier to diversify away systematic risk than unsystematic risk. 16. When graphing the security market line, risk is arrayed along the vertical axis. 17. The market risk premium would be the same for both high and low risk stocks. 18. The greater the rate of inflation, the greater the slope of the SML will be