Which of the Following Statements Is False

question 39

Multiple Choice

Which of the following statements is false?

• A) There are two indexes that try to represent the performance of the Canadian stock market.
• B) A market index reports the price of a particular portfolio of securities that make up the index.
• C) Since 2002, Standard & Poor's Corporation of New York has managed the S&P/TSX Composite Index.
• D) The S&P/TSX Composite Index is a popular portfolio used to represent the market index when applying the CAPM to Canadian stocks, as it represents about 95% of Canada's equity market capitalization.

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Definitions:

Adopted

Refers to the acceptance or taking on of something, such as a law, resolution, amendment, or child, as one's own.

Preincorporation Subscription

Agreements made by investors to purchase stock in a corporation prior to its formation.

Capital Stock

The total amount of shares a company is authorized to issue, representing the equity stake of its owners.

Revised Act

An updated or amended version of a legislative act or statute that incorporates changes or new provisions to address issues or developments since its original enactment.