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:

Total Amount

The complete sum or quantity of something, often referring to the total money involved in a transaction.

Pareto Efficient

A condition in which no individual's situation can be improved without worsening the situation of another individual.

Public Good

A product or service that is provided without profit to all members of a society, either by the government or a private individual or organization.

Private Good

A product or service that is consumed by an individual and cannot be used or consumed by others once it is purchased.