Which of the Following Statements Is False

question 105

Multiple Choice

Which of the following statements is false?

• A) The variance of a portfolio is equal to the weighted average correlation of each stock within the portfolio.
• B) The variance of a portfolio is equal to the sum of the covariances of the returns of all pairs of stocks in the portfolio multiplied by each of their portfolio weights.
• C) The variance of a portfolio is equal to the weighted average covariances of each stock within the portfolio.
• D) The volatility declines as the number of stocks in a portfolio grows.

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Definitions:

Bleeder Resistors

Resistors used in power supplies to drain residual voltage and ensure safety by discharging capacitors after power is turned off.

Pre-Start-Up Inspection

A systematic review conducted on machinery or systems before they are started, ensuring safety, compliance, and functionality.

Field Checkout

The process of verifying and testing equipment and systems at the job site to ensure proper operation according to design specifications.