Which of the Following Statements Is False

question 28

Multiple Choice

Which of the following statements is false?

• A) The S&P/TSX Composite Index and the S&P/TSX 60 Index are both well-diversified indexes that roughly correspond to the market of Canadian stocks.
• B) Practitioners commonly use the S&P 500 as the market portfolio in the CAPM with the belief that this index is the Canada market portfolio.
• C) The S&PO/TSX 60 Index covers about 73% of the market value of Canadian equities traded.
• D) The S&P/TSX Composite Index was the first widely publicized value-weighted U.S. index and it has become a benchmark for professional investors.

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Definitions:

Inefficiently High Level

A scenario where more resources are used than necessary, leading to waste and inefficiency.

Common Resource

A type of good that provides benefits to many individuals, but which has the potential to be depleted or overused because it is not excludable.

Inefficient Allocation

A situation where resources are not distributed or utilized in a way that maximizes potential output or welfare.

Decision Makers

Individuals or groups responsible for making choices that determine the course of actions to be followed by an organization or system.