Which of the Following Statements Is False

question 71

Multiple Choice

Which of the following statements is false?

• A) If two stocks move in opposite directions, one will tend to be above average when the 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.

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Definitions:

Latent Learning

Learning that occurs without apparent reinforcement but is not demonstrated until an incentive is provided.

Traumatic Amnesia

Memory loss following a traumatic event, where the individual may be unable to recall important personal information or details of the trauma.

Repression

A defense mechanism in psychoanalytic theory where unwanted or distressing thoughts and memories are unconsciously pushed out of conscious awareness.

Anterograde Amnesia

A memory deficit suffered after some kinds of brain damage, in which the patient seems unable to form new explicit memories; however, memories acquired before the injury are spared.