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:

Population Average

The mean value of a trait or characteristic within an entire population.

Sample Mean

The average of all the data points in a sample, used as an estimate of the population mean.

Square Root

The square root of a number is a value that, when multiplied by itself, gives the original number.

P < 0.05

A statistical threshold indicating that the observed results are significant with a probability of less than 5% being due to chance.