Which one of the following statements concerning beta is correct?

Question $29$ options:

The higher the beta, the higher the discount rate used for the dividend discount model.

A stock with a beta of $1\mathrm{.}2$ earns a higher risk premium than a stock with a beta of $1\mathrm{.}3.$

The beta assigned to the overall market is zero.

A stock with a beta of $\mathrm{.}5$ has $50$ percent more risk than the overall market.

Beta is applied to the T$-$bill rate when computing the discount rate used for the dividend discount models.