Determine Whether the Statement Is True or False

question 105

Multiple Choice

Determine whether the statement is true or false. If it is true, explain why it is true. If it is false, give an example to show why it is false. ​
If h(x, y) = f(x) g(y) , where f is continuous on [a, b] and g is continuous on [c, d], then
​ where .
​

• A) From the definition follows , so the statement is false.​
• B) From the definition follows , so the statement is true.​
• C) From the definition follows , so the statement is false.​

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Definitions:

Firm-Specific Risk

The portion of a security's risk that is attributable to factors affecting only that company, distinct from market risk.

Unique Risk

Risk that affects a very limited number of assets, often referred to as "unsystematic risk" or "idiosyncratic risk."

Diversifiable Risk

The portion of an investment's risk that can be mitigated or eliminated through portfolio diversification.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.