True or False
1. Starting to invest late for retirement increases the benefits of compound interest.
2. Variance is a measure of the variability of returns, and since it involves squaring the deviation of each actual return from the expected return, it is always larger than its square root, the standard deviation.
3. If the returns of two firms are negatively correlated, then one of them must have a negative beta.
4. If inflation is expected to be relatively high, then interest rates will tend to be relatively low, other things held constant.
5. The higher the risk, the higher the security’s required return, other things held constant.