The beta coefficient

A stock's 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.

Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or false:

Stock A$\text{'}$s beta is $1\mathrm{.}0$ ; this means that the stock moves in the same direction and magnitude as the market.

A stock that is more volatile than the market will have a beta of more than $1\mathrm{.}0.$

Higher$-$beta stocks are expected to have lower required returns.