Which of the Following Statements Is FALSE

question 38

Multiple Choice

Which of the following statements is FALSE?

• A)The S&P 500 and the Wilshire 5000 indexes are both well-diversified indexes that roughly correspond to the market of U.S.stocks.
• B)Practitioners commonly use the S&P 500 as the market portfolio in the CAPM because they believe that this index is actually the market portfolio.
• C)Standard & Poor's Depository Receipts (SPDR,nicknamed "spider")trade on the American Stock Exchange and represent ownership in the S&P 500.
• D)The S&P 500 was the first widely publicized value weighted index and it has become a benchmark for professional investors.

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Definitions:

Forgeries

The action of forging or producing a copy of a document, signature, banknote, or work of art with the intent to deceive.

Unauthorized Check

A bank check that is issued without the account holder's approval or knowledge, potentially leading to fraud.

Overdraft Protection

A financial service that prevents checks, withdrawals, and other transactions from resulting in a negative account balance, often by linking to another account or providing a line of credit.

Federal Law

Laws passed by the national legislature of a country, applicable throughout the country.