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.

Define and determine fixed, variable, semi-variable, and step costs.

Understand sales mix and its impact on composite unit calculations.

Understand the concept and calculation of the break-even point.

Comprehend the role and application of sensitivity analysis in cost-volume-profit (CVP) analysis.

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Definitions:

Restrictive Techniques

Behavior management strategies that limit or restrict individuals' actions or freedom as a form of control or safety.

Method of Induction

A technique or process used to introduce or bring about a state, action, or condition.

Method of Deduction

A logical process wherein one derives specific conclusions from general premises or known facts.

Ignoring

Deliberately paying no attention to something or someone.