Which of the Following Statements Is FALSE

question 28

Multiple Choice

Which of the following statements is FALSE?

• A) The S&P 500 and the Wilshire 5000 indexes are both well-diversified indexes that roughly correspond to the market of U.S. stocks.
• B) Practitioners commonly use the S&P 500 as the market portfolio in the CAPM with the belief that this index is the market portfolio.
• C) Standard & Poor's Depository Receipts (SPDR, nicknamed "spider") trade on the American Stock Exchange and represent ownership in the S&P 500.
• D) The S&P 500 was the first widely publicized value weighted index and it has become a benchmark for professional investors.

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Definitions:

Credit Side

The right side of an account ledger, where increases in liabilities, equity, and revenue or decreases in assets are recorded.

Asset Account

An account on a company's balance sheet that represents a resource with economic value that is expected to provide future benefit.

Supplies

Items or materials used in the daily operations of a business.

Unearned Revenue

Money received by a business for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until earned.