In response to the same external forces the return on one


TRUE/FALSE:

1. In response to the same external forces, the return on one investment may increase while the return on another investment may decrease.

2. Zero correlated assets reduce risk more than negatively correlated assets.

3. Risk can be defined as uncertainty concerning the actual return that an investment will generate.

4. Investments with lower standard deviations can be expected to produce higher rate or return.

5. Standard deviation is a measure that indicates how the price of an individual security responds to market forces.

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Financial Management: In response to the same external forces the return on one
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