6. The beta coefficient A stock's contribution to the market risk of a well-diversified portfolio is called coefficient, which calculates the degree to which a stock moves with the movements in the market. risk. It can be measured by a metric called the beta Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or false: Statement Beta coefficients are generally calculated using historical data. Higher-beta stocks are expected to have higher required returns. Stock A's beta is 1.0; this means that the stock has a negative correlation with the market. True False