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:

Standards Clarity

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A field of engineering that focuses on designing processes, equipment, and systems to ensure safety and prevent accidents in the workplace.

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Protections against unauthorized access to locations, resources, or information, ensuring safety and confidentiality.

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A personality trait characterized by resilience and the ability to cope effectively with stress.