Which of the Following Statements Is False

question 1

Multiple Choice

Which of the following statements is false?

• A) Because very little trading is required to maintain it, an equal-weighted portfolio is called a passive portfolio.
• B) If the number of shares in a value-weighted portfolio does not change, but only the prices change, the portfolio will remain value-weighted.
• C) The CAPM says that individual investors should hold the market portfolio, a value-weighted portfolio of all risky securities in the market.
• D) A price-weighted portfolio holds an equal number of shares of each stock, independent of their size.

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Definitions:

Actual Costs

The true expenses incurred in the production of goods or provision of services, as opposed to estimated or budgeted costs.

Process Costing System

An accounting method used to allocate costs to units of product in industries where the production process is continuous and the units of product are indistinguishable from each other.

Operation Costing System

A costing system that combines elements of both job costing and process costing, often used in manufacturing.

Job Costing System

An accounting method used to assign costs to specific jobs or projects to accurately track expenses and estimate future costs and profitability.