Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Which of the following statements is false?
A.
The lower the correlation coefficient, the greater the potential benefits from diversification.
B.
To make the covariance of two random variables easier to interpret, it may be divided by the product of the random variables’ standard deviation. The resulting value is called the correlation coefficient, or simply, correlation.
C.
The risk that remains cannot be diversified away and is called the systematic risk.
D.
In the event of bankruptcy,
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