True / False

The amount an investor is willing to pay for an investment should be determined by the past performance of the investment.

In response to the same external force, the return on one investment may increase while the return on another investment may decrease.

The holding period return is an excellent method for comparing a short-term investment to a long-term investment.

Risk can be defined as uncertainty concerning the actual return that an investment will generate.

The possibility that deflation could affect the rate of return on an investment is referred to as interest rate risk.

Portfolio objectives should be established before beginning to invest.

The transaction costs of investing directly in foreign-currency-denominated assets are relatively low.

A beta of 0.5 means that a stock is half as risky the overall market.

The basic theory linking risk and return is the Capital Asset Pricing Model.