Which of the Following Statements Is False

question 7

Multiple Choice

Which of the following statements is false?

• A) The market portfolio contains more of the smallest stocks and less of the larger stocks.
• B) For the market portfolio, the investment in each security is proportional to its market capitalization.
• C) Because the market portfolio is defined as the total supply of securities, the proportions should correspond exactly to the proportion of the total market that each security represents.
• D) Market capitalization is the total market value of the outstanding shares of a firm.

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Definitions:

United States Supreme Court

The United States Supreme Court is the highest judiciary authority in the U.S., having the ultimate appellate jurisdiction over all federal and state court cases that involve a point of constitutional and federal law.

In Rem Jurisdiction

Court jurisdiction over a defendant’s property.

Resident of Illinois

A person who legally lives in or has established domicile in the state of Illinois, USA.

Warehouse Ownership

The possession and control over a warehouse facility, often involving responsibilities for the stored goods.