Which of the Following Statements Is FALSE

question 31

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

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Definitions:

Evolutionary Theory

A theoretical framework that explains how biological traits and behaviors evolve over generations through natural selection, genetic drift, mutation, and gene flow.

Sibling Conflict

The disagreements, competition, and fights that occur between brothers and sisters, often part of normal sibling dynamics.

Reactive

Characterized by actions taken in response to external stimuli or events, as opposed to initiating actions proactively.

Person-Environment Transaction

The dynamic interaction and exchange between individuals and their surrounding physical, social, and cultural environments.