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.

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Definitions:

Buying Center

A group composed of all of the people performing different roles in the buying process (e.g., user, buyer, decider, influencer, gatekeeper) based on their expertise and responsibilities within their firm.

Simile

A figure of speech comparing two different things, often introduced with the words “like” or “as,” to create a vivid description.

Metaphor

An implied comparison that uses a contrasting word or phrase to evoke a vivid image.

Transactional Selling

A sales strategy that focuses on achieving quick sales without a significant emphasis on building long-term customer relationships.