1. True/False (Explain)
   1. A portfolio comprises two stocks, A and B, with equal amounts of money invested in each. If the price of stock A increases and that of stock B decreases, the weight of stock A in the portfolio will increase.
   2. If two stocks returns have a correlation coefficient that is positive, then there is no diversification effect when you combine them into a portfolio.
   3. When we form an equally weighted portfolio of stocks and keep increasing the number of stocks in the portfolio, the volatility of the portfolio also increases.