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.