Which of the Following Statements Is INCORRECT

Multiple Choice

Which of the following statements is INCORRECT?

A) A stock market index is a hypothetical portfolio formed according to some criteria or rules.
B) Most indexes,unlike total return indexes,make no adjustment for regular cash dividends.
C) Total return indexes assume that all disbursements from the company including regular dividends get reinvested in the hypothetical index portfolio.
D) The cost-of-carry model that has a total return index as the underlying requires dividend adjustments.
E) The cost-of-carry model that uses indexes like the Dow Jones Industrial Average and the Standard and Poor's 500 index requires dividend adjustments.