Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) Dividing the covariance by the volatilities ensures that correlation is always between -1 and +1.
• B) Volatility is the square root of variance.
• C) The closer the correlation is to 0, the more the returns tend to move together as a result of common risk.
• D) If two stocks move together, their returns will tend to be above or below average at the same time, and the covariance will be positive.

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Definitions:

Neurons

Basic units of the brain and nervous system responsible for processing and transmitting information through electrical and chemical signals.

Neurons

Specialized cells of the nervous system that transmit information throughout the body via electrical and chemical signals.

Specialized Cells

Cells that are adapted to perform specific functions within an organism.

Neurons

Specialized cells in the nervous system that transmit information to other nerve cells, muscle, or gland cells.