Which of the Following Statements Is FALSE

question 101

Multiple Choice

Which of the following statements is FALSE?

• A)Dividing the covariance by the volatilities ensures that correlation is always between -1 and +1.
• B)Volatility is the square root of variance.
• C)The closer the correlation is to 0,the more the returns tend to move together as a result of common risk.
• D)If two stocks move together,their returns will tend to be above or below average at the same time,and the covariance will be positive.

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Definitions:

Genetics

The study of heredity and the variation of inherited characteristics, involving genes and DNA and how these are passed down from parents to offspring.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

Intelligence

An individual’s ability to adapt to the environment.

Telomeres

The protective caps at the end of chromosomes that shorten with each cell division, associated with aging and cell lifespan.