Which of the Following Statements Is FALSE

question 121

Multiple Choice

Which of the following statements is FALSE?

• A)Stock returns will tend to move together if they are affected similarly by economic events.
• B)Stocks in the same industry tend to have more highly correlated returns than stocks in different industries.
• C)Almost all of the correlations between stocks are negative,illustrating the general tendency of stocks to move together.
• D)With a positive amount invested in each stock,the more the stocks move together and the higher their covariance or correlation,the more variable the portfolio will be.

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Definitions:

Bone And Cartilage

Connective tissues in animals; bones provide structural support and protection, while cartilage reduces friction and acts as a cushion between joints.

Ectoderm

The outermost of the three primary layers in an embryo, from which the skin, nervous system, and sense organs develop.

Germ Layer

One of the three primary layers of cells (ectoderm, mesoderm, and endoderm) in the very early embryo, from which all tissues and organs develop.

Digestive Tube

The tubular passage functioning in the digestion and absorption of food and the elimination of food residues, stretching from the mouth to the anus.