True/False, need 1-10

True False O 0 1. RETURN = LOSS / ORIGINAL COST O O 2. If Stock X has a higher profit than Stock Y, it is not fair to assume that Stock X has a higher HPR. 3. A quarterly return of 3% equates to an EAR of 12%. O O 0 o O 4. Large company stocks tend to have larger standard deviations than small company stocks. 5. In a normal distribution, about 95% of all observations fall within two standard deviations of the average. 6. It is not possible to earn more than 100% in a single year. O O O O 7. In the CAPM equation, stocks with larger betas will have lower expected returns. 8. The SML intersects the risk axis when graphed. O 0 O O 9. The market risk premium would be the same for stocks with different betas. O O 10. It is fair to say that systematic risk can be diversified away