$32.$ Read and understand the covariance between two securities or portfolios is a

measure of how the rates of return for the two securities behave relative to each

other. Which of the following statements below is incorrect:

i$.$ A negative covariance means that the two securities consistently

move in the opposite direction

ii$.$ The covariance between two securities is the sum of the standard

deviation of each security and their coefficient of correlation

iii. A covariance of $0$ means that the returns from the two securities

are independent of each other

iv$.$ If two securities have a covariance of $1,$ putting them together in a

portfolio will still result in a reduction in risk