Which of the Following Statements Is FALSE

question 86

Multiple Choice

Which of the following statements is FALSE?

• A)If two stocks move in opposite directions,one will tend to be above average when the other is below average,and the covariance will be negative.
• B)The correlation between two stocks has the same sign as their covariance,so it has a similar interpretation.
• C)The covariance of a stock with itself is simply its variance.
• D)The covariance allows us to gauge the strength of the relationship between stocks.

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Definitions:

Texas Borderland

A region characterized by its geographic location on the border between the United States and Mexico, notable for its unique cultural, social, and economic dynamics.

Tejanos

Texas settlers of Spanish or Mexican descent.

Unskilled Agricultural

Work in the agricultural sector that requires minimal training or skills, often involving basic tasks such as planting, watering, and harvesting crops.

Free Soil Party

Political organization formed in 1848 to oppose slavery in the territory acquired in the Mexican War; nominated Martin Van Buren for president in 1848. By 1854 most of the party’s members had joined the Republican Party.