True or False?

1.-The only variable on the right-hand side of the CAPM formula that varies from one company to another is expected return on the market.

2-In order to properly evaluate a stock, investors need only consider its risk.

3-Investors should always choose stocks with the highest reward-risk ratio.

4-

To find the standard deviation, we take the square root of the sum of the squared deviations of each observation from the mean of the observations.

5- When working with the entire population of observations, the denominator of the variance calculation is (n - 1).

6-

Ceteris

paribus,

lower standard deviations represent greater risk.