True or false. If your answer is false, you must justify your answer with a one sentence explanation to receive any credit.

22. Suppose we bought an asset for $1 that ended up with a price of $1.01 at the end of one year. We know that this assets arithmetic return was 1%.

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

24. 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.

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

27. 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.

28. There are 3,000 stocks in the Russell 3000.

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

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