Which of the Following Statements Is FALSE

question 59

Multiple Choice

Which of the following statements is FALSE?

• A)The market portfolio contains more of the smallest stocks and less of the largest stocks.
• B)For the market portfolio,the investment in each security is proportional to its market capitalization.
• C)Because the market portfolio is defined as the total supply of securities,the proportions should correspond exactly to the proportion of the total market that each security represents.
• D)Market capitalization is the total market value of the outstanding shares of a firm.

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Definitions:

International Organization

A body that operates across national borders, focusing on global and regional issues, including economic, social, or environmental matters.

Global Reporting Initiative

An international organization that develops and encourages the use of sustainability reporting standards.

CSR Initiative

Corporate Social Responsibility initiative; a company's efforts to improve society in ways that go beyond the interests of the firm and that are not required by law.

Social Performance

A measure of how well an organization achieves social goals, such as community support and employee satisfaction.