Question: Establish whether the following statements are True, False, or Ambiguous and provide a justification for your answer. Q1. When considering the risk premium for individual

Establish whether the following statements are True, False, or Ambiguous and provide a justification for your answer.

Q1. When considering the risk premium for individual securities, the volatility of returns can be a poor measure of risk.

Q2. Increasing the number of assets in an equally weighted portfolio will typically increase the portfolio's Sharpe ratio.

Q3. A trading rule that buys (sells) shares of a firm when the firm's stock return in the previous month was positive (negative) will generate a positive Alpha if the stock market is (informationally) efficient in the weak form.

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