Which of the Following Statements Is False

question 26

Multiple Choice

Which of the following statements is false?

• A) Beta measures the sensitivity of a security to market-wide risk factors.
• B) Volatility measures total risk, while beta measures only systematic risk.
• C) The beta is the expected percentage change in the excess return of the market portfolio for a 1% change in the excess return of a security.
• D) Utilities tend to be stable and highly regulated, and thus are insensitive to fluctuations in the overall market.

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Definitions:

Expectancy Theory

A motivational theory suggesting that people are motivated to act in certain ways based on their expectations of the outcome and the value they place on that outcome.

Specific Rewards

Targeted benefits or incentives provided to individuals or groups for achieving certain goals or performance criteria.

Leaders

Individuals who influence and guide others toward achieving common goals through vision, inspiration, and strategic direction.

Recognition

The act of acknowledging or rewarding someone's achievements, skills, or qualities.