Which of the Following Statements Is False

question 89

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:

National Association for the Advancement of Colored People

A civil rights organization founded in 1909 to fight for the elimination of racial prejudice and discrimination, advocating for the rights and well-being of African Americans.

Hepburn Act

The Hepburn Act of 1906 is a United States federal law that gave the Interstate Commerce Commission the authority to set maximum railroad rates and extend its jurisdiction.

Railroad Abuse

Refers to unethical or illegal practices by railroad companies, often involving overcharging, monopolies, and exploitation of government land grants in the 19th and early 20th centuries.

ICC

Stands for the Interstate Commerce Commission, a regulatory agency in the United States created to regulate railroads and later trucking, to ensure fair rates and to regulate other aspects of common carriers.