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Which one of the following statements about stock index is false?

A. Equal-weighted stock index invests equal dollar amount in each stock in the index.

B. Value-weighted stock index invests dollar amount proportional to the market value of each stock in the index.

C. Price-weighted stock index invests dollar amount proportional to the stock price of each stock in the index.

D. Value-weighted stock index invests equal number of shares in each stock in the index

Which one of the following statements about short sales is true?

A. Maximum losses are limited.

B. The investor who short sells a stock must give stock lender any dividends paid on the stock.

C. The investor who short sells a stock loses if the stock price falls

D. Proceeds from the sale of borrowed stock can be invested in other stocks.