c. Which of the following statements is/are correct (true/false)? 1. Diversification reduces risk because prices of stocks do not usually move exactly together. 2. The risk that can be potentially eliminated by diversification is called market risk. 3. The risk of a well-diversified portfolio depends on the market risk of the securities included in the portfolio. 4. The sensitivity of an investments return to market movements is usually called its beta. 5. The expected return on a portfolio is a weighted average of the expected returns on the individual securities. 6. The standard deviation of returns on a portfolio is equal to the weighted average of the standard deviations on the individual securities if these returns are completely uncorrelated.