1. If you decide to buy 100 shares of Google, you would probably do so by calling your broker and asking him or her to execute the for you. This would be defined as a secondary market transaction, not a primary market transaction. True False
2. The CAPM is on historic conditions, although in most cases we use expected future data in applying it. Because used in the CAPM are calculated using expected future data, they are not subject to changes in future on volatility. This is one of the strengths of the CAPM. True False
3. The coefficient of variation, calculated as the standard deviation of expected returns divided by the expected return, is a standardized of the risk per unit of expected return. True False
4. Bad managerial judgments or unforeseen negative events that happen to a firm are defined as "company-specific, " or events, and their effects on investment risk can in theory be diversified away. True False