risk. It can be A stock's contribution to the market risk of a well-diversified portfolio is called measured by a metric called the beta coefficient, which calculates the degree movements in the market. hoves with the relevant unsystematic Based on your understanding of the beta coefficient, indicate whether the following statements are true or false. Statement True False 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. 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. There are different ways of calculating the beta coefficient for a stock. With the information given in the following table, calculate the beta coefficient of Stock i by filling in the missing information in the table. Data Stock i's standard deviation 35.00% Market's standard deviation 32.00% Correlation between Stock i and the market 0.65 Beta coefficient of Stock i: To calculate the beta of another company, using regression analysis, you get the value of R2 as 0.59. Based on your calculation, which of the following interpretations is true? The percentage of variance in the company's stock explained by the market is lower than that of a typical stock. The percentage of variance in the company's stock explained by the market is higher than that of a typical stock