Which of the following statements is false? The market portfolio contains more o
ID: 2718825 • Letter: W
Question
Which of the following statements is false?
The market portfolio contains more of the smallest stocks and less of the larger stocks.
For the market portfolio, the investment in each security is proportional to its market capitalization.
Because the market portfolio is defined as the total supply of securities, the proportions should correspond exactly to the proportion of the total market that each security represents.
Market capitalization is the total market value of the outstanding shares of a firm.
Which of the following statements is false?
The market portfolio contains more of the smallest stocks and less of the larger stocks.
For the market portfolio, the investment in each security is proportional to its market capitalization.
Because the market portfolio is defined as the total supply of securities, the proportions should correspond exactly to the proportion of the total market that each security represents.
Market capitalization is the total market value of the outstanding shares of a firm.
Explanation / Answer
Market capitalization is the total market value of the outstanding shares of the firm
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