Which of the Following Statements Is FALSE

question 71

Multiple Choice

Which of the following statements is FALSE?

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

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Definitions:

Communication Channel

The medium—print, broadcast, the Internet—that carries the message.

Medium

A means or channel through which something is communicated or expressed, such as language for ideas, or media like television and radio for information.

Rule-Of-Thumb Method

A heuristic process or guideline that simplifies decision-making without guarantees of accuracy or comprehensiveness.

IMC Budgeting

Involves allocating financial resources for Integrated Marketing Communications, ensuring a strategic mix of advertising, sales promotion, public relations, and direct marketing efforts.