Which of the Following Statements Is FALSE

question 68

Multiple Choice

Which of the following statements is FALSE?

• A)A stock's return is perfectly positively correlated with itself.
• B)When the covariance equals 0,the stocks have no tendency to move either together or in opposition of one another.
• C)The closer the correlation is to -1,the more the returns tend to move in opposite directions.
• D)The variance of a portfolio depends only on the variance of the individual stocks.

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Definitions:

Creditors

Individuals or entities that are owed money or other obligations by debtors.

Judicial Lien

A court order that allows a creditor to satisfy a debt by seizing the property of the debtor.

Creditor

An entity (person or institution) that lends money or extends credit to another party, expecting to be repaid in the future.

Legal Action

A formal proceeding taken in a court of law to enforce or defend a right or seek a remedy.