According to behavioural finance, investors are perfectly rational and always make optimal decisions.

True

False

Stochastic models assume a deterministic outcome for investment returns.

True

False

Diversification is unnecessary if markets are truly efficient, according to the EMH.

True

False

In a log$-$normal distribution model for investment returns, returns are assumed to be normally distributed.

True

False

Risk$-$neutral investors value increments in wealth equally regardless of overall wealth level.

True

False