(1) Comment on the following quotation from an investment analyst:

" Stocks that move perfectly with the market have a beta of 1. Betas get higher as volatility goes up and lower as it goes down. Thus, AA Power, an energy company whose shares have traded close to $ 12 for most of the past three years, has a low beta. At the other extreme, there's BB Electonics, whose share price has been as high as $150 and as low as $ 50."