The beta coefficient measures: the return relative to the risk-free rate the return relative to the market return the historical volatility relative to the market's volatility the required return on a financial asset

A stock return's beta measures:Group of answer choicesthe stock's covariance with the risk-free asset.the change in the stock's return for a given change in the market return.the standard deviation on the stock's return.the return on the stock.

The beta coefficient measures:

Which of the following statements is FALSE? It is common practice to estimate beta based on the historical correlation and volatilities. Beta is the expected percent change in the excess return of the security for a 1% change in the excess return of the market portfolio. Beta represents the amount by which risks that affect the overall market are amplified for a given stock or investment. Beta measures the diversifiable risk of a security, as opposed to its market risk, and is the appropriate measure of the risk of a security for an investor holding the market portfolio.

The excess return earned by an asset that has a beta of 1.0 over that earned by a riskfree asset is referred to as the:Market rate of return.Market risk premium.Total return.Real rate of return.

Given: risk-free rate of return = 5 % market return = 10%, cost of equity = 15% value of beta (β) is:a.1.9b.1.8c.2.0d.2.2