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:

Major Term

In syllogistic logic, the predicate of the conclusion, which appears in one of the premises.

Minor Term

In syllogistic logic, the term that appears in the conclusion as the subject and is a specific instance within the general category of the major term.

Middle Term

In a syllogism, the term that appears in both premises but not in the conclusion, serving as a link between the two other terms.

Family-Oriented Television

TV programming designed to be suitable and appealing to all family members, often focusing on family values.