6. The beta coefficient A stock's contribution to the market risk of a well-diversified portfolio is called coefficient, which calculates the degree to which a stock moves with the movements in the market. risk. It can be measured by a metric called the beta Based on your understanding of the beta coefficient, indicate whether each statement in the following table is true or falser True False Statement Beta coefficients are generally calculated using historical data Higher beta stocks are expected to have higher required returns Stock As beta ls 1.0this means that the stock has a negative correlation with the market