A stock's contribution to the market risk of a well-diversified portfolo is called risk. According to the Capital Asset Pricing Model (CAPM), this risk can be measured by a metric called the beta coefficient, whih degree to which a stock moves with the movements in systematic the market. unsystematic Based on your understand ing of the beta coefficient, indicate whether each stakememewrevdlowing table is true or false: Statement True False A stock that is more volatile than the market will have a beta of less than 1.0 Beta measures the volatility in stock movements relative to the market 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 There are different ways of calculating the beta coefficient for a stock. Using the information given in the following table, calculate the beta coefficient of Stock i: Data Stock i's standard deviation 35.00% Market's standard deviation 32.00% Correlation between Stock i and the market 0.65 , Ss, . , o .00 Beta coefficient of Stock i: To calculate the beta of another company, using regression analysis, you get the value of Ra as 0.27. Based on your calculation, which of the following interpretations is true The percentape of variance in the company's stock explained by the market is higher than that of a typlcal stock. The percentage of variance in the company's stock explained by the market is lower than that of a typical stock