Which of the Following Statements Is False

question 38

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:

Capillary Refill

A test to assess blood circulation, where pressure is applied to a nail bed and the time is measured for color to return, indicating blood flow efficiency.

Nail

A small, slender piece of metal typically used as a fastener, peg, or spike.

Near Vision

The ability to see objects clearly at a close range, typically within a few inches to a few feet from the eyes.

Inches

A unit of measurement in the Imperial system equal to one-twelfth of a foot, commonly used to measure length.