1. When a security is underpriced, it means that it has a high return to risk ratio. Therefore, the investors should buy the security

   True

   False

2. If a conventional project A, has a IRR greater than the required rate of return then you expect the project to have a negative NPV.

   True

   False

3. Suppose you are holding a portfolio of two stocks, a risk-free asset and a stock. Therefore, the correlation between the two assets in your portfolio should be zero

   True

   False