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:

Temporary/Permanent

In accounting, this distinction refers to how certain accounts (temporary) close at the end of a fiscal period, while others (permanent) carry their balances forward.

Account Balance

The difference between the debits and credits recorded in an account.

Financial Statement

A precise documentation of monetary activities and the financial state of a corporation, a person, or another entity.

Account Balance

The total amount of money that is present in an account at any given time, which can be a positive or negative value.