Which of the Following Statements Is FALSE

question 77

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:

Egocentric Child

A developmental stage in children where they perceive, understand, and interpret the world primarily from their own perspective.

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development in children.

Cognitively Limited

Describes a condition or state where an individual's mental capacity is restricted in understanding or processing information.

Preoperational Stage

A stage in Piaget's theory of cognitive development, typically from ages 2 to 7, characterized by symbolic thinking, egocentrism, and a lack of logical reasoning.