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Which of the following statements is FALSE? Beta measures the sensitivity of a security to market-wide risk factors. Volatility measures total risk, while beta measures
Which of the following statements is FALSE? Beta measures the sensitivity of a security to market-wide risk factors. Volatility measures total risk, while beta measures only systematic risk. 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. Utilities tend to be stable and highly regulated, and thus are insensitive to fluctuations in the overall market. None of the above
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