TRUE/FALSE QUESTIONS:

1.The square root of the standard deviation is the variance.

2.Without comparing stocks, it is impossible to tell the level of riskiness just by using standard deviation.

3.It is difficult to find arbitrage in an efficient market.

4.Diversification is to invest in a single stock in different amounts over time.

5.If you hold enough different stocks, you only have to worry about systematic risk.

6.Diversification can get rid of exchange rate risk.

7.The market portfolio only contains securities from big firms.

8.Beta is another type of measurement that is similar to variance.

9.Gold can improve a portfolios position despite being a risky asset.

10.Only a portion of diversifiable risk can be eliminated in a well-diversified portfolio.