Which of the Following Statements Is FALSE

question 49

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.