1) Stock X has expected return of 10% and standard deviation of 5%. Stock Y has expected return of 6% and standard deviation of 4%. Therefore, Stock X is more risky than Stock Y because Stock X has a higher standard deviation.

True or False

2) The tighter the probability distribution of its expected future returns, the greater the risk of a given investment as measured by its standard deviation.

True or False

3) The actual return will be the same as the expected return for a risk-free investment. But the actual return might be different from the expected return for a risky investment.

True or False