Alexis determines that the standard deviation of her SafeBet stock is 25% per year. She knows the standard deviation of a broad market index is 10% per year. If the correlation coefficient between SafeBet and the market index is 0.4, Alexis will find that, on average:

		SafeBet provides a much greater return than the market for a given positive increase in market return
		SafeBet provides a reduction in negative returns when the market as a whole declines
		SafeBet's return will move by 0.4 percent when the market moves by 1 percent
		SafeBet's return will move by 1 percent when the market moves by 1 percent
		SafeBet's return will move by 40 percent when the market moves by 1 percent