Which of the following statements about correlation is incorrect?

Which of the following statements about correlation is incorrect?



A) If two variables are statistically independent of each other, their correlation coefficient is zero.

B) Negatively correlated investments offer the best opportunities for diversification.

C) If two investments are perfectly correlated, their correlation coefficient is +1.

D) The risk of fire is positively correlated with the risk of traffic accidents



Answer: D

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