Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) A market index reports the value of a particular portfolio of securities.
• B) The S&P 500 is the standard portfolio used to represent "the market" when using the CAPM in practice.
• C) Even though the S&P 500 includes only 500 of the more than 7,000 individual Canadian stocks in existence, it represents more than 70% of the Canadian stock market in terms of market capitalization.
• D) The S&P 500 is an equal-weighted portfolio of 500 of the largest Canadian stocks.

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Definitions:

Education

The process of receiving or giving systematic instruction, particularly at a school or university, fostering knowledge and skill development.

Standardized Testing

A form of testing that requires all test takers to answer the same questions, or a selection of questions from a common bank of questions, in the same way, to enable a consistent measurement of their abilities or performance.

Cognitive Ability

The capacity to perform mental processes related to learning, thinking, reasoning, problem-solving, and memory.

Cultural Bias

The phenomenon of interpreting and judging phenomena by standards inherent to one's own culture, leading to a skewed understanding or assessment.