TRUE OR FALSE (if false please explain why)

1) If you have a 20-year, $1 million mortgage at a 5% rate, after 10 years the remaining loan balance will be $.5 million.

2) Suppose we have a tax rate of .2 and we sell an asset for $10,000. The after-tax cash flow would be $8,000.

3) An asset that is depreciated in the 3-year MACRS class will have 0 book value at the end of 3 years.

4) If two bonds are otherwise identical, the bond with the higher yield will have the lower price.

5) If we currently hold only one stock with a standard deviation of .2 we would increase our portfolios standard deviation if we also invest in a stock with a standard deviation of .3.

6) There are 3,000 stocks in the Russell 3000.

7) Most US corporate bonds currently have a price greater than their par value.

8) The capital appreciation on the S&P500 index is an accurate estimate of the investors actual realized return over that period.