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:

Cognitive-behavioral Therapy

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic procedure.

Somatoform Disorders

A group of psychological disorders in which patients experience physical symptoms that have no identifiable physical cause, often linked to psychological factors.

Anxiety Disorders

A category of mental health disorders characterized by feelings of anxiety and fear, where anxiety is a worry about future events and fear is a reaction to current events.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.