Which of the Following Statements Is FALSE

question 34

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) When the covariance equals 0, the returns are uncorrelated.
• C) To find the risk of a portfolio, we need to know more than the risk and return of the component shares; we need to know the degree to which the shares' returns move together.
• D) Independent risks are uncorrelated.

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Definitions:

Cerebrum

The largest part of the brain, responsible for higher brain functions such as thought, action, and emotion.

Synaptic Transmission

The process by which signals are passed between neurons through the synapse, involving the release of neurotransmitters.

Electrical Neural Impulse

The electrical signals transmitted along neurons, facilitating communication between the brain and parts of the body.

Synaptic Cleft

The tiny gap between neurons across which neurotransmitters are released and received, facilitating neural communication.