Which of the following statements is FALSE?
A) The most familiar stock index in the United States is the Dow Jones Industrial Average (DJIA).
B) A portfolio in which each security is held in proportion to its market capitalization is called a price-weighted portfolio.
C) The Dow Jones Industrial Average (DJIA) consists of a portfolio of 30 large industrial stocks.
D) The Dow Jones Industrial Average (DJIA) is a price-weighted portfolio.
B
Explanation: B) A portfolio in which each security is held in proportion to its market capitalization is called a value-weighted portfolio.
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