Which of the Following Statements Is FALSE

question 77

Multiple Choice

Which of the following statements is FALSE?

• A)A value-weighted portfolio is an equal-ownership portfolio: We hold an equal fraction of the total number of shares outstanding of each security in the portfolio.
• B)When buying a value-weighted portfolio,we end up purchasing the same percentage of shares of each firm.
• C)To maintain a value-weighted portfolio,we do not need to trade securities and rebalance the portfolio unless the number of shares outstanding of some security changes.
• D)In a value-weighted portfolio the fraction of money invested in any security corresponds to its share of the total number of shares outstanding of all securities in the portfolio.

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Definitions:

AIDA

An acronym standing for Attention, Interest, Desire, Action; a marketing model that outlines the process for achieving successful advertising or sales.

Unidirectional

Refers to a process or communication that moves in one direction only, without a return path or feedback loop.

Audiences

Groups of individuals who receive and react to messages, such as those in media, communications, or presentations.

Deductive Reasoning

A logical process in which a conclusion is based on the concordance of multiple premises that are generally assumed to be true.