True or False

1. It takes longer than eight years to retire a $24,000 loan at 8% if the annual payment is $3,000. (T)
2. An annuity of $100 for ten years is currently less valuable if interest rates are 10% instead of 12%. (F)
3. If a person buys a stock for $10 and sells it after ten years for $20, the annual compound return is 10%. (F)
4. Higher rates of interest are associated with greater present values. (F)
5. The standard deviation measures an asset's expected return. (F)
6. Unsystematic risk is the tendency for stock prices to move together. (F)
7. Systematic risk is reduced through diversification. (T)
8. A beta of 2.0 indicates the return on the asset is more volatile than the market. (T)
9. The numerical value of a stock's beta tends to be stable over time. (F)
10. An aggressive investor will tend to prefer stocks with high betas during rising markets. (T)
11. The return on a portfolio considers both the individual asset's return and its weight in the portfolio. (T)
12. If a firm pays 10% compounded semi-annually, the true rate of interest is greater than 10%. (F)
13. The larger the standard deviation of an investment's return, the larger is the investment's risk. (T)
14. A beta coefficient is an index of an asset's unsystematic risk. (F)
15. A portfolio consisting of securities that are highly correlated is well diversified. (F)
16. The expected return on an investment includes both the expected of income plus expected price appreciation. (T)
17. The capital asset pricing model specifies the required return adjusted for systematic risk. (T)
18. The risk premium in the capital asset pricing model rises with the expected return on the market. (F)
19. Beta coefficients are computed with estimated data concerning the asset's expected return. (F)

Thanks for the help.

You knocked 'em out pretty well, Z... nice work. But, you'll need to revisit nos. 7 and 12. (Hint on no. 12: )