Conceptual questions on beta A stock's contribution to the market risk of a well-diversified portfolio is called risk. According to the Capital Asset Pricing Model (CAPM), this risk can be measured by a metric efficient, which calculates the degree to which a stock moves with the movements in the Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or false: Beta measures the volatility in stock movements relative to the market. A stock that is more volatile than the market will have a beta of less than 1.0. 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