True or False:
1. A stock on the SML must have a NPV of $0.
2. If an investment has zero risk, it will have a zero return.
3. The more stocks that are added to a portfolio, the lower the portfolio Beta will become.
4. If NPV is negative, then IRR must be negative also.
5. If a stock is above the SML, it must be too cheap.
6. The EMH implies that we can never earn a return that exceeds the stock market index.
7. Since depreciation is a non-cash expense, it has no effect on cash flow.
8. The EMH questions a skilled investor’s ability to consistently beat the market.
9. All stocks that are expected to pay the same future dividends will have the same price.
10. If a company announced record earnings, its stock price would go up.
please also give reasons