Answer all question. Only state the statements below whether TRUE or FALSE.

TRUE FALSE Expected return is synonymous with required return. O Possibility of a decline in the market share due to low quality products is an example of systematic risk. O The type of risk that is not diversifiable and affects the value of portfolio is interest rate risk. It can be assumed that the lower the expected value of an investment, the higher the standard deviation will be. O Coefficients of correlation of -1.0 would eliminate risk in an investment portfolio. O Covariance specifically measures the volatility of returns together with their correlation with the returns of other securities. O Systematic risk is rewarded with a premium in the marketplace because it represents a random occurrence which could not have been foreseen. O O