Which of the Following Statements Is FALSE

question 104

Multiple Choice

Which of the following statements is FALSE?

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

Differentiate between normal and inferior goods through income elasticity.

Identify the goals of scientific research in behavior.

Distinguish between science and pseudoscience.

Understand Goodstein's characteristics of scientific enquiry.

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Definitions:

Legislator

An individual who has the power to make, change, or repeal laws within a government.

Secondary Effects

Unintended consequences or outcomes that arise from a primary action or decision.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action, often contrary to the original intentions.

Economic Change

Alterations in the structure, performance, or state of an economy over a period, influenced by policy, innovation, and external factors.