Which of the Following Statements Is FALSE

question 13

Multiple Choice

Which of the following statements is FALSE?

• A)To find the risk of a portfolio, we need to know more than the risk and return of the component shares; we need to know the degree to which the shares' returns move together.
• B)While the sign of the correlation is easy to interpret, its magnitude is not.
• C)When the covariance equals 0, the returns are uncorrelated.
• D)Independent risks are uncorrelated.

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Definitions:

False Communication

The act of transmitting misleading or untrue information, which can lead to misunderstandings or misrepresentations.

Knowledge Of Falsity

Awareness or understanding that certain information or statement is false or untrue.

Defamation Suit

A legal action brought against an individual or entity for making false statements that harm another's reputation.

Absolute Privilege

A legal immunity shielding individuals from lawsuits for statements made during certain official proceedings, regardless of their truth or intention.