Which of the Following Statements Is False

question 98

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 Canadian stocks.
• B) Practitioners commonly use the S&P 500 as the market portfolio in the CAPM with the belief that this index is 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:

Environmental Scan

The process of systematically examining external and internal environments to identify opportunities, threats, trends, and strategic uncertainties.

Direct Forecast

A method of predicting future values such as sales or trends by directly analyzing specific variables or indicators.

Forecast

A prediction or estimate of future trends, events, or conditions, often based on current data or trends.

Intervening Steps

The stages or actions that occur between the start and completion of a process, often involving intermediary tasks or decisions.