True/False

1. Alphas reflect the unexplained variability in a regression model. It is commonly attributed to the portfolio manager's ability. Therefore, it is a reliable predictor of a manager's future performance.

2. The lower the duration of a bond portfolio, the lower its interest rate risk.

3. The Efficient Frontier is comprised of risky portfolios that are mean/variance efficient.

4. Lower expected market returns in the MRP result in lower intrinsic values, all else equal.

5. You just purchased a 10-year coupon bond with a YTM of 5 percent. If you save your coupons, at maturity your principal plus the coupons will represent an amount that reflects a 5 percent compound annual return.