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:

Laxatives

Substances taken to stimulate bowel movements and alleviate constipation.

Diuretics

Medications designed to increase the amount of water and salt expelled from the body as urine, commonly used to treat high blood pressure and fluid retention.

Enemas

Medical procedures involving the injection of liquid or gas into the rectum to expel its contents or administer drugs or food.

Biological Theory

suggests that biological factors such as genetics, brain chemistry, and physical health significantly influence human behavior and mental states.