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.

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Definitions:

Leadership

The process of influencing and guiding others to work towards the achievement of specific goals.

Firm's Culture

The collective behavior, values, practices, and beliefs of an organization's members that shape its social and psychological environment, influencing how work gets done.

Business Strategy

A plan of action designed by an organization to achieve specific goals, outperform competition, and secure long-term success.

Ubiquitin

A small eukaryotic regulatory polypeptide that can be covalently bonded to proteins, targeting the protein for destruction and recycling. Also used to regulate protein activities.