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:

Memory Difficulties

Problems with the ability to recall or retain information, which can be due to aging, medical conditions, or psychological factors.

GABA

Gamma-Aminobutyric Acid, a neurotransmitter in the brain that inhibits nerve transmission, playing a key role in reducing neuronal excitability and anxiety.

Serotonin Metabolism

The biological process by which the neurotransmitter serotonin is produced, used, and broken down in the body.

SSRI

Stand for Selective Serotonin Reuptake Inhibitors, a class of drugs used to treat depression by increasing the level of serotonin in the brain.