1. For a stock with a beta coefficient of b=1.50, it is: a. more volatile than the average stock. b. about the same volatility of an average stock. c. less volatile than the average stock. d. Cannot determine. 2. For a stock with a beta coefficient of b=1.50, in a year when the market return is 20%, we expect, in this particular example, the stock's return to be: a. about 20%. b. about 25%. c. about 30%. d. not enough information to determine. 3. For a stock with a beta coefficient of b=1.50, in a year when the market return is 10%, we expect, in this particular example, the stock's return to be: a. about 0%. b. about 10%. c. about 20%. d. about 30%. 4. For a stock with a beta coefficient of b=0, which of these statements is true in this particular example? a. The line in the graph is flat b. It is like a riskless asset with a guaranteed return of 10% no matter what the market does c. There is no chance of lower performance than the market but also no chance. d. All of the above. Conceptual Overview: Explore how stock volatility relates to the beta coefficient b risk measure. in a year when the market lost 10%, the less volatile stock did a letter better with a 0% "return." There are two simple principles: 1. The larger the beta coefficient b (i.e., the steeper the slope), the more volatile the returns from the stock. 2. Beta coefficients b greater than 1.0 indicate the stock is more volatile than average and slopes less than 1.0 indicate the stock is less volatile than average