Identify the incorrect statement.

Points: 1

1. The volatility of a portfolio's returns is influenced by the correlation of returns between the assets it holds.

2. The volatility of a portfolio's returns is influenced by the volatility of the individual assets it holds.

3. The volatility of a portfolio's returns is influenced by the investor's risk return profile.

4. The volatility of a portfolio's returns is influenced by the weighting of each asset in the portfolio.