Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) The portfolio that contains all shares of all stocks and securities in the market is called the efficient portfolio.
• B) The market portfolio is an efficient portfolio.
• C) We can measure the systematic risk of a security's return by its beta.
• D) Because it is difficult to find data for the returns of many bonds and small stocks, it is common practice to use the S&P 500 portfolio as a proxy for the market portfolio, under the assumption that the S&P 500 is large enough to be essentially fully diversified.

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Definitions:

Average Number

The sum of values divided by the count of values, used to find the central or typical value in a set of numbers.

Customers

Individuals or businesses that purchase goods or services from a company or store.

Queue

A queue of individuals or vehicles lined up awaiting their chance to proceed or receive service.

Little's Law

A principle in queue theory that states the long-term average number of items in a queuing system equals the long-term average effective arrival rate multiplied by the average time an item spends in the system.