Use the Information for the Question(s)below

question 32

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share,200 shares of Lowes (LOW) at $30 per share,and 100 shares of Ball Corporation (BLL) at $40 per share.
-Which of the following statements is FALSE?

• A)If two stocks move in opposite directions,one will tend to be above average when to other is below average,and the covariance will be negative.
• B)The correlation between two stocks has the same sign as their covariance,so it has a similar interpretation.
• C)The covariance of a stock with itself is simply its variance.
• D)The covariance allows us to gauge the strength of the relationship between stocks.

---

Definitions:

Audience-centric Approach

A strategy in communication or marketing that focuses on understanding and addressing the needs, preferences, and expectations of the target audience.

Effective Communication

The successful conveyance or exchange of information and ideas through clear and comprehensible messages.

Cultural Diversity

The existence of a variety of cultural or ethnic groups within a society, organization, or community.

Ethical Dilemmas

Situations where an individual must choose between two conflicting moral principles, making the decision difficult.