The proportion of variation in a company's return that is related to the variation in the market return is measured with the

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The coefficient of determination, also known as R-squared, measures the proportion of variation in a company's return that is explained by the variation in the market return. It ranges from 0 to 1, with higher values indicating a stronger relationship between the two variables. Standard deviation measures the dispersion of data from the mean, epsilon is a term used in statistics for a small positive quantity, and alpha is a measure of a fund's excess return relative to its benchmark. None of these are directly related to the proportion of variation in a company's return that is related to the variation in the market return.

The Proportion of Variation in a Company's Return That Is