Which of the Following Statements Is FALSE

question 121

Multiple Choice

Which of the following statements is FALSE?

• A)Stock returns will tend to move together if they are affected similarly by economic events.
• B)Stocks in the same industry tend to have more highly correlated returns than stocks in different industries.
• C)Almost all of the correlations between stocks are negative,illustrating the general tendency of stocks to move together.
• D)With a positive amount invested in each stock,the more the stocks move together and the higher their covariance or correlation,the more variable the portfolio will be.

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Definitions:

Pubertal Development

The physical changes occurring in the body that lead to sexual maturity, including growth spurts, the development of secondary sexual characteristics, and changes in reproductive organs.

Growth Spurt

A rapid period of physical growth during puberty where children experience a significant increase in height and weight.

Genetically Programmed

Describes traits or behaviors that are determined by one's genetic makeup, indicating that certain aspects of an individual's biology are pre-determined at birth.

Additional Time

An extension of time provided beyond the original allotment, often used in contexts such as examinations, project deadlines, or sports matches.