A stocks contribution to the market risk of a well-diversified portfolio is called ____________ risk. It can be measured by a metric called the beta coefficient, which calculates the degree to which a stock moves with the movements in the market. a) relevant b) unsystematic

TRUE OR FALSE

a) A stock that is more volatile than the market will have a beta of less than 1.0.

b) Beta measures the volatility in stock movements relative to the market.

c) Over time, a stock with a beta of 1.0 produces a return that goes up and down with a 1:1 relationship with the return on the market.