Which of the Following Statements Is FALSE

question 31

Multiple Choice

Which of the following statements is FALSE?

• A)While the sign of the correlation is easy to interpret,its magnitude is not.
• B)Independent risks are uncorrelated.
• C)When the covariance equals 0,the returns are uncorrelated.
• D)To find the risk of a portfolio,we need to know more than the risk and return of the component stocks;we need to know the degree to which the stocks' returns move together.

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Definitions:

Concrete

Pertaining to actual objects or specific, tangible details rather than abstractions; often used in developmental psychology to describe a stage where children think literally about physical objects and experiences.

Epistemic Cognition

The ways in which an individual understands how they arrived at ideas, beliefs, and conclusions.

Metacognition

The awareness and understanding of one's own thought processes, including the ability to monitor, regulate, and adapt these processes for better learning.

Relativistic Thinking

A type of thinking that recognizes the validity of multiple perspectives and that knowledge is contextual rather than absolute.