The more stocks that are added to portfolio

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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

Reference no: EM132059474

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