The stock of a certain company increases in correlation with the market return. As a result, its beta will decrease.

Name: The stock of a certain company increases in correlation with the market return. As a result, its beta will decrease.
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Beta measures a stock's volatility in relation to the overall market. If a stock increases in correlation with the market return, its beta would either remain the same or increase, indicating that its movements are closely tied to the market's movements.

The Stock of a Certain Company Increases in Correlation with the Market