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:

Marginal Social Cost

The additional cost incurred by society as a whole due to producing one more unit of a good or service.

Pollution

The contamination of the natural environment, leading to adverse effects on ecosystems and human health.

Marginal Social Cost

The extra expense society incurs from the production of an additional unit of a good or service.

Pollution

The act of introducing harmful substances into the environment, leading to negative changes.