True or False

1. Market risk, also referred to as systematic risk, can be eliminated by diversifying the investment portfolio.

2. A securitys beta measures its market or systematic risk.

3. An increase in the market risk premium in the Capital Asset Pricing Model would, other things held constant, increase the required rate of return on an individual stock.

4. An investors return is made up potentially of two parts, the cash yield from either dividends or interest payments, and the capital gain or capital loss yield.