Which of the Following Statements Is FALSE

question 9

Multiple Choice

Which of the following statements is FALSE?

• A) If two stocks move in opposite directions, the covariance will be negative.
• B) The correlation between two stocks has the same sign as their covariance, so it has a similar interpretation.
• C) The covariance of a stock with itself is simply its variance.
• D) The covariance allows us to gauge the strength of the relationship between stocks.

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Definitions:

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indicates the state of being conscious and aware of one's surroundings, in contrast to being asleep.

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A supplement form of melatonin, a hormone naturally produced by the pineal gland in the brain, used to regulate sleep-wake cycles or treat sleep disorders.

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A trance-like state of focused attention and heightened suggestibility, with diminished peripheral awareness, often induced by a hypnotic suggestion.