1. (True/False) Markowitzs Efficient Frontier Theory is based upon a set of optimal portfolios that offer the highest expected return for a defined level of risk or the highest risk for a given level of expected return.

2. (True/False) The prudent investor rule is a legal guideline for trustees of investment portfolios. It requires a fiduciary to act in the best interest of the trusts beneficiaries and outlines standards for legally controlling investment portfolios.

3. (True/False) The Modern Portfolio Theory (MPT) is a method that can be used by risk-averse investors to construct diversified portfolios that maximize their returns without unacceptable levels of risk.