Question $5$

$1$ pts

One way to identify riskier assets from safer ones is that the riskier investments will have greater dispersion of returns than the safer ones $($the risky asset will have higher high returns and lower low returns than the safer ones$).$

True

False

Question $6$

$1$ pts

One basic principle of finance is that risk, by itself, is neither good nor bad. We can only make a "value" judgment about the risk of an asset after evaluating both the risk and the return. High risk may be "good" if it is accompanied by high enough return.

True $$

False