Which of the Following Statements Is Correct

question 81

Multiple Choice

Which of the following statements is correct?

• A)Uncorrelated assets have a correlation of -1.0.
• B)Most common stocks are positively correlated with each other because they are impacted by the economic factors.
• C)We can typically add many stocks together to fully eliminate the market risk in a portfolio.
• D)None of these statements is correct.

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Definitions:

Connectionism

An approach to cognition emphasizing parallel processing of information through immense networks of interconnected nodes. Models developed in the connectionist tradition are sometimes declared to share certain similarities with the way collections of neurons operate in the brain; hence, some connectionist models are referred to as neural networks.

Hierarchical Network Model

A cognitive psychology theory proposing that mental categories are organized in a hierarchical manner, where broader categories encompass more specific ones.

Collins

Commonly refers to Allan Collins, a cognitive scientist known for his work in educational technology and the development of learning theories, including the Cognitive Apprenticeship model.

ACT

ACT stands for Acceptance and Commitment Therapy, a form of psychotherapy that encourages individuals to embrace their thoughts and feelings rather than fighting or feeling guilty for them.