True/False-An investor wh obuys one year treasury notes inyear1and then rolls over the principal into new…

QUESTION11.An investor wh obuys one year treasury notes inyear1and then rolls over the principal into new…investmentsinoneyeartreasurynoteseveryyearfor30yearswillhavelockedincertainannualrateofreturnfor30years.TrueFalseQUESTION21.It is possible to combine risky assets in proportions such that the resulting portfolio hasless risk than the assets themselves.TrueFalseQUESTION31.The Beta of portflioA is greater than 1.Portfolio ABeta stock1A1.1B1.2C0.67D0.89E2.3.weight0.30.10.10.30.2TrueFalseQUESTION41.Based on data supplied by Yahoo Finance you can conclude that on average a decline inthe value of the stock market by 1% will coincide with a decline in BAS by less than 1%.TrueFalseQUESTION51.If you own shares in SPY valued at $10,000 and you now add $10,000 worth of commonstock in PH and $10,000 worth of common stock in TXT to your original portfolio the risk ofyour portfolio will increase.TrueFalseQUESTION61.Betastock1A1.1B1.2C0.67D0.89E2.weight0.30.10.10.30.2Portflio A has more market risk than the S&P 500. (Use Yahoo Finance as your source).3.4.5.TrueFalseQUESTION71.My strateg yforpor tfolio management is to read the wall streetjournalfrom8AMto11AMeachmorningandbasemybuyandselldecisionsonthenewsIhaveread.ItappearsthatIacceptthatmarketsareefficientinthestrongform.TrueFalseQUESTION81.True diversification means an investor owns different types of stocks, such as large, medium, andsmall companies, and various kinds of bonds, such as Treasury, corporate, asset-backed, and mortgagebonds. In addition to asset classes true diversification includes owning assets that are located in or areclaims on income streams that originate in many geographical regions.TrueFalseQUESTION91.The correct discount rate used to find the value of Microsoft is based on adiscount rate that incorporates the risk MSFT contributes to a well-diversified portfoliosince rational investors would never own a single stock.TrueFalseQ U E S T I O N 101.An investor who buys and sells government notes each day is assured of a certainreturn because treasury notes have no default risk and the coupon is fixed.TrueFalseQ U E S T I O N 111.Portfolio ABeta stock1Aweight0.3Portfolio BBeta stock1Aweight0.31.1B1.2C0.67D0.89E2.3.4.5.6.0.10.10.30.21.3B1.5C1.2D1.4E0.10.10.30.2Portfolio B is riskier than portfolio A if we measure risk by the Beta of the portfolio.TrueFalseQUESTION121.If you buy the ETF with the ticker DOG you more exposed to market risk thanfirm specific risk?TrueFalse