Which of the Following Statements Is False

question 39

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 to 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:

Subsequent Arrests

Arrest incidents that occur following a prior arrest, indicating a pattern or series of legal complications for an individual.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists among the parameters being tested.

Subsequent Arrests

Refers to arrests that occur after an initial arrest, indicating instances of re-offending or continued criminal behavior.

Commonwealth

A political community founded for the common good, often used to describe self-governing territorial units that share affiliations with other states.