True or False?

17. If you construct an optimal stock portfolio using the formula from this course, your true Sharpe ratio in the next year cannot be negative 18. If you construct an optimal stock portfolio using the formula from this course, your sample Sharpe ratio in the next year cannot be negative 19. If the stock price goes down and volatility goes up, the put option price should drop 20. The portfolio theory is a probabilistic and statistical approach. It is fundamentally different from a security analysis that explores the fundamental values of individual stocks. Therefore, you should choose only one approach between two. 17. If you construct an optimal stock portfolio using the formula from this course, your true Sharpe ratio in the next year cannot be negative 18. If you construct an optimal stock portfolio using the formula from this course, your sample Sharpe ratio in the next year cannot be negative 19. If the stock price goes down and volatility goes up, the put option price should drop 20. The portfolio theory is a probabilistic and statistical approach. It is fundamentally different from a security analysis that explores the fundamental values of individual stocks. Therefore, you should choose only one approach between two