Which of the following statements is FALSE? O a. Because very little trading is required to maintain it, an equal-weighted portfolio is called a passive portfolio. O b. The CAPM says that individual investors should hold the market portfolio, a value-weighted portfolio of all risky securities in the market. O c. A price-weighted portfolio holds an equal number of shares of each stock, independent of their size. O d. If the number of shares in a value-weighted portfolio does not change, but only the prices change, the portfolio will remain value-weighted.
Which of the following statements is FALSE? O a. Because very little trading is required to maintain it, an equal-weighted portfolio is called a passive portfolio. O b. The CAPM says that individual investors should hold the market portfolio, a value-weighted portfolio of all risky securities in the market. O c. A price-weighted portfolio holds an equal number of shares of each stock, independent of their size. O d. If the number of shares in a value-weighted portfolio does not change, but only the prices change, the portfolio will remain value-weighted.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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