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:

Storge

A type of love that emphasizes mutual affection, friendship, and long-term commitment, often found in familial relationships.

Friendships

A close and mutual relationship between two people that involves trust, support, and a strong emotional bond.

Family Members

Individuals who are related by blood, marriage, or adoption, and often share a common household or familial bond.

Commitment

Our intention to remain in a relationship.