Which of the Following Statements Is False

question 45

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 U.S. Stocks in existence, it represents more than 70% of the U.S. stock market in terms of market capitalization.
• D) The S&P 500 is an equal-weighted portfolio of 500 of the largest U.S. stocks.

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Definitions:

Rotating Magnetic Field

A magnetic field that rotates in space within electrical machinery, used to generate rotating mechanical force.

Stationary Windings

Fixed coils of wire in an electric motor or generator that contribute to magnetic field production when current flows through them.

Voltage Regulator

Controls voltage in a circuit either electromechanically (obsolete) or electronically.

Loose Belt(s)

A condition where drive belts in machinery or vehicles lack proper tension, leading to slippage and reduced efficiency.