Which of the Following Statements Is FALSE

Which of the following statements is FALSE?

A) If two stocks move in opposite directions, the covariance will be negative.
B) The correlation between two stocks has the same sign as their covariance, so it has a similar interpretation.
C) The covariance of a stock with itself is simply its variance.
D) The covariance allows us to gauge the strength of the relationship between stocks.

Correct Answer:

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