Which of the Following Statements Is FALSE

question 24

Multiple Choice

Which of the following statements is FALSE?

• A) Stock returns will tend to move together if they are affected similarly by economic events.
• B) Stocks in the same industry tend to have more highly correlated returns than stocks in different industries.
• C) Almost all of the correlations between stocks are negative, illustrating the general tendency of stocks to move together.
• D) With a positive amount invested in each stock, the more the stocks move together and the higher their covariance or correlation, the more volatile the portfolio will be.

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Definitions:

Frontal Lobes

Areas of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, expressive language, and managing higher level executive functions.

Amygdala

A part of the brain involved in processing emotions, particularly those related to fear, anxiety, and aggression.

Pubic Hair

Body hair that appears on and around the genital regions during puberty as a secondary sexual characteristic.

Memory Function

The cognitive processes involved in the encoding, storage, and retrieval of information.