Which of the Following Statements Is FALSE

question 74

Multiple Choice

Which of the following statements is FALSE?

• A) The maximum benefits to diversification between securities occurs when they are perfectly positively correlated.
• B) The maximum benefits to diversification between securities occurs when they are perfectly negatively correlated.
• C) There is some benefit to diversification when the correlation between securities is 0.0.
• D) There is some benefit to diversification when the correlation between securities is greater than 0.0 but less than 1.0.

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Definitions:

Fresco

Painting on lime plaster, either dry (dry fresco, or fresco secco) or wet (true, or buon, fresco). In the latter method, the pigments are mixed with water and become chemically bound to the freshly laid lime plaster. Also, a painting executed in either method.

Avarice And Gluttony

Two of the seven deadly sins; avarice refers to an extreme greed for wealth or material gain, while gluttony denotes excessive intake of food or drink.

Alarm Conditions

Scenarios or states within a system that indicate something is wrong or outside of normal operating parameters, often triggering warnings or corrective actions.

Monitored Condition

A specific state or change in state of a system component that is continuously observed to ensure proper operation.