Which of the Following Statements Is False

question 16

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.

---

Definitions:

PRISM Program

A surveillance program by the United States National Security Agency (NSA) that collects internet communications from various U.S. internet companies.

American Citizens

Individuals who have citizenship status in the United States of America.

Job Rotation

Involves systematically moving employees from one job to another.

Motivational Approach

Methods or strategies used to inspire individuals or groups towards achieving certain goals or tasks.