More preferred stock issues than common stock issues

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True or false. No explanation is required.

1. Over the last 5 years, the Russell small stock index has consistently out-performed the Russell large stock index.

2. The S&P400 index is composed of the 400 largest stocks in the S&P500.

3. Over the last decade, in the U.S., there were more preferred stock issues than common stock issues.

4. The yield curve almost always slopes upward.

5. An asset that last year had a Sharpe ratio = 0 would have had acceptable performance.

6. An equity that last year had an a = 0 would have had acceptable performance.

7. More attractive CEOs on average will receive higher total wages.

8. On average, a zero-coupon bond will increase in value as it approaches maturity.

9. On average, a coupon bond will increase in value as it approaches maturity.

10. A bond with a coupon rate higher than its yield is worth more than its par value.

11. Real interest rates are generally higher than nominal interest rates.

12. REITs pay almost no taxes.

13. If the S&P500 index had a positive return today, we would expect that a US investment grade bond index would also have a positive return today.

14. A floating rate mortgage generally has a higher interest rate than a fixed rate mortgage.

15. The Fisher effect implies that the 10-year government bond rate is roughly inflation plus a constant.

Reference no: EM13846362

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