Which of the Following Statements Is FALSE

question 55

Multiple Choice

Which of the following statements is FALSE?

• A) The covariance and correlation allow us to measure the co-movement of returns.
• B) Correlation is the expected product of the deviations of two returns.
• C) Because the stocks' prices do not move identically, some of the risk is averaged out in a portfolio.
• D) The amount of risk that is eliminated in a portfolio depends on the degree to which the stocks face common risks and their prices move together.

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Definitions:

Family-Oriented Television

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

Animated Television

Television content produced by creating sequential drawings or models to give the illusion of movement.

Prime Time

A period during which the largest number of viewers or listeners are tuned in to broadcasts, typically in the evening for television.

Categorical Syllogism

A form of deductive reasoning consisting of three propositions: a major premise, a minor premise, and a conclusion, where each proposition involves a classification of things.