Which of the Following Statements Is FALSE

question 101

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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