Which of the Following Statements Is FALSE

question 54

Multiple Choice

Which of the following statements is FALSE?

• A)Because very little trading is required to maintain it,an equal-weighted portfolio is called a passive portfolio.
• B)If the number of shares in a value-weighted portfolio does not change,but only the prices change,the portfolio will remain value-weighted.
• C)The CAPM says that individual investors should hold the market portfolio,a value-weighted portfolio of all risky securities in the market.
• D)A price-weighted portfolio holds an equal number of shares of each stock,independent of their size.

---

Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the shipping cost until the goods reach the buyer's specified location.

Cost of Inventory

The total cost incurred to acquire stock items that are intended for resale, including purchase price, freight, and handling fees.

Physical Inventory

An actual count of all the goods on hand at the end of an accounting period.

Single-Step Income Statement

A simplified financial statement format that calculates net income by subtracting total expenses from total revenues in one step.