The first blank has the options unsystematic or systematic

3. 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 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: False Higher-beta stocks are expected to have lower required returns A stock that is more volatile than the market will have a beta of more than 1.0 Stock A's beta is 1.0; this means that the stock moves in the same direction and magnitude as the market