Which of the following statements is FALSE?
A) While the sign of the correlation is easy to interpret, its magnitude is not.
B) When the covariance equals 0, the returns are uncorrelated.
C) To find the risk of a portfolio, we need to know more than the risk and return of the component shares; we need to know the degree to which the shares' returns move together.
D) Independent risks are uncorrelated.
Correct Answer:
Verified
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