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Which of the Following Statements Is FALSE

Question 49

Multiple Choice

Which of the following statements is FALSE?


A) The closer the correlation is to -1, the more the returns tend to move in opposite directions.
B) A share's return is perfectly positively correlated with itself.
C) The variance of a portfolio depends only on the variance of the individual shares.
D) When the covariance equals 0, the shares have no tendency to move either together or in opposition of one another.

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