TRUE or FALSE? Mark the correct answer for each statement. a. The expected or mean return is calculated as a weighted av

[answerhappygod]

TRUE or FALSE? Mark the correct answer for each statement.
a. The expected or mean return is calculated as a weighted
average of the possible returns, where the weights correspond to
the probabilities.
TRUE
FALSE
b. The closer the correlation is to 0, the more the returns tend
to move together as a result of common risk.
FALSE
TRUE
c. The put position has a higher return in states with low stock
prices; that is, if the stock has a positive beta, the put has a
negative beta.
TRUE
FALSE
d. The risk premium of a security is determined by its
systematic risk and does not depend on its diversifiable risk
FALSE
TRUE
e. The WACC incorporates the benefit of the interest tax shield
by using the firm's before-tax cost of capital for debt.
FALSE
TRUE