True or False

1) The Sharpe measure is based on the concept of total risk, so it is appropriate for evaluating only the diversified portfolios

2) For a portfolio comprised of 2 stocks, diversification exists only if the correlation coefficient between the stocks is negative

3) The factor, Rm-Rf, can be regarded as a zero-investment portfolio, in which one borrows at the market portfolio rate of return to invest in the risk-free assets

4) A well-specified model should include all the relevant factors and yet exclude any factor that is not relevant.