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:

1895

The year that marked various significant global events, including the invention of X-ray imaging by Wilhelm Conrad Roentgen.

American Policy

Refers to the strategies and decisions made by the United States government regarding domestic and international issues.

China

A country in East Asia, the world's most populous nation, with a rich history, diverse culture, and significant influence on global economics and politics.

Late Nineteenth Century

A period from 1870 to 1900 characterized by significant technological, economic, and social changes, including industrialization and the expansion of imperial empires.