Which of the Following Statements Is FALSE

question 4

Multiple Choice

Which of the following statements is FALSE?

• A) The variance of a portfolio depends only on the variance of the individual shares.
• B) When the covariance equals 0, the shares have no tendency to move either together or in opposition of one another.
• C) A share's return is perfectly positively correlated with itself.
• D) The closer the correlation is to -1, the more the returns tend to move in opposite directions.

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Definitions:

Canadians

Citizens of Canada, a country located in North America.

Aspirin

A medication used to reduce pain, fever, and inflammation, and in low doses, to prevent blood clots.

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A feeling of unsteadiness or a sensation of movement within the head which may lead to imbalance or falling.

Nauseous

Feeling sick with an inclination to vomit or experiencing discomfort in the stomach.