Use the Information for the Question(s)below

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share,200 shares of Lowes (LOW) at $30 per share,and 100 shares of Ball Corporation (BLL) at $40 per share.
-Which of the following statements is FALSE?

A) If two stocks move in opposite directions,one will tend to be above average when to other is below average,and 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.