Which of the Following Statements Is FALSE

question 68

Multiple Choice

Which of the following statements is FALSE?

• A)A stock's return is perfectly positively correlated with itself.
• B)When the covariance equals 0,the stocks have no tendency to move either together or in opposition of one another.
• C)The closer the correlation is to -1,the more the returns tend to move in opposite directions.
• D)The variance of a portfolio depends only on the variance of the individual stocks.

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Definitions:

Free African Americans

Individuals of African descent in the United States who were not enslaved and lived with certain legal restrictions despite their status.

Colonization Movement

The historical process by which a country takes control over foreign lands to exploit resources, establish settlements, and exert political control.

African Americans

A racial or ethnic group in the United States with ancestry from the black racial groups of Africa.

Mission System

A network of missions established by European colonizers, particularly in the Americas, for the purposes of Christianizing, colonizing, and managing indigenous populations.