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.

---

Definitions:

Psychokinesis

A purported psychic ability allowing a person to influence a physical system without physical interaction.

Kinesthesia

The sense that detects bodily position, weight, or movement of the muscles, tendons, and joints, enabling physical coordination.

Sensory Interaction

The process by which multiple sensory systems combine to influence perception and behavior.

Psychokinesis

The supposed ability to move or manipulate objects with the mind without physical interaction.