True or False:

1. The balance sheet is a financial statement measuring the progress of the firm at a point in time while the income statement measures the flow of funds into and out of various accounts over time.
2. When adding new securities to an existing portfolio, the lower the degree of correlation between the new securities and those already in the portfolio, the greater the benefits of the additional portfolio diversification.
3. You would be subject to more interest rate risk if you purchased a 30-year bond than if you bought a 5-year bond.
4. An increase in a firm's inventory turnover ratio suggests that it is managing its inventory more efficiently.
5. If two firms have the same current dividend and the same expected growth rate, their stocks must sell at the same current price.