Which of the Following Statements Is False

question 38

Multiple Choice

Which of the following statements is false?

• A) A value-weighted portfolio is an equal-ownership portfolio: we hold an equal fraction of the total number of shares outstanding of each security in the portfolio.
• B) When buying a value-weighted portfolio, we end up purchasing the same percentage of shares of each firm.
• C) To maintain a value-weighted portfolio, we do not need to trade securities and rebalance the portfolio unless the number of shares outstanding of some security changes.
• D) In a value-weighted portfolio the fraction of money invested in any security corresponds to its share of the total number of shares outstanding of all securities in the portfolio.

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Definitions:

Buildup

The gradual accumulation or increase of something over time.

Diastolic Pressure

The pressure in the arteries when the heart rests between beats.

Force

In physics, an interaction that, when unopposed, changes the motion of an object.

Heart Rests

Periods where cardiac activity is minimal, allowing for recovery and reduced strain on the heart.