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.

Question

Quizplus · Accepted Answer

The statement "The S&P 500 is an equal-weighted portfolio of 500 of the largest U.S. stocks" is false. The S&P 500 is a market-capitalization-weighted index.

Which of the Following Statements Is FALSE