Which of the Following Statements Is FALSE

question 41

Multiple Choice

Which of the following statements is FALSE?

• A)A market index reports the value of a particular portfolio of securities.
• B)The S&P 500 is the standard portfolio used to represent "the market" when using the CAPM in practice.
• C)Even though the S&P 500 includes only 500 of the more than 7,000 individual U.S.Stocks in existence,it represents more than 70% of the U.S.stock market in terms of market capitalization.
• D)The S&P 500 is an equal-weighted portfolio of 500 of the largest U.S.stocks.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, critical for calculating cost of goods sold and inventory levels.

LIFO Cost-Flow

An inventory valuation method where the last items of inventory purchased are the first ones to be used or sold, standing for Last In, First Out.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.