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.

---

Definitions:

Relatives

are people who are connected to an individual by blood or marriage, encompassing a wide range of familial relationships like parents, siblings, cousins, and in-laws.

Exosystem

A socio-ecological model layer affecting a person indirectly, involving contexts or settings that do not include the person but still influence their experiences.

Microsystem

The immediate environment in which an individual personally interacts, such as family, school, or workplace, influencing development and socialization.

Ecological

Relating to or concerned with the relation of living organisms to one another and to their physical surroundings.