This is correct - a quad-core 4 GHz can run four threads at an effective speed that's more or less the same as a single core 16 GHz CPU.I believe the CPU speed is applicable for each core of the CPU. e.g. My W3690 has 6 cores. And each of them can work at 3.46GHz (not considering turbo boost at here). And they can all work at 3.46GHz instantaneously.
Don't figure hyper-threaded cores into the mix though - a hyper-threaded quad-core 4 GHz could be more or less the same as 12 GHz to 32 GHz, depending on the apps.