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Which of the following are definitely true regarding portfolio theory based on risk and return?...

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Finance

Which of the following are definitely true regarding portfolio theory based on risk and return?

  1. If an investor has a well-diversified portfolio, the portfolio would have a of 0
  2. If an investor has a well-diversified portfolio, the portfolio would have a of 1
  3. If Stock A has a higher expected return than Stock B, a rational investor would choose to invest in Stock A
  4. A well-diversified portfolios level of risk cannot be further reduced down

I only

IV only

II and III

II only

None of them

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