Which of the Following Statements Is FALSE

question 77

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:

Congress

is the legislative branch of the United States government, composed of two houses: the Senate and the House of Representatives, responsible for making federal laws.

Corrupt

Engaged in dishonest or fraudulent conduct by those in power, typically involving bribery or the abuse of entrusted power for personal gain.

Constituents

Residents within a political district or constituency who have the power to elect representatives to legislative or other government offices.

Seniority

The concept of prioritizing individuals for privileges, responsibilities, or positions based on the length of service or tenure in a job or organization.