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.

Question

Quizplus · Accepted Answer

The beta is the expected percentage change in the excess return of a security for a 1% change in the excess return of the market portfolio, not the other way around.

Which of the Following Statements Is FALSE