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:

Internal Mental Events

Processes that occur within the mind, such as thought, perception, and emotion, that are not observable by others.

B. F. Skinner

An American psychologist known for his work in developing the theory of operant conditioning within behavioral psychology.

John Watson

An American psychologist who established the psychological school of behaviorism, emphasizing the importance of observable behavior over internal mental states.

Free Will

The ability to choose one's actions free from certain constraints, implying a sense of autonomy and responsibility for those decisions.