In capital asset pricing model, an amount of risk that stock contributes to portfolio of market is classified as

stand-alone coefficient
relevant coefficient
alpha coefficient
beta coefficient

The correct answer is: Beta coefficient.

Beta coefficient is a measure of a stock’s volatility relative to the market. It is calculated by regressing the stock’s returns against the market returns. A beta of 1 indicates that the stock moves in perfect correlation with the market, while a beta of 0 indicates that the stock is not correlated with the market. A beta of greater than 1 indicates that the stock is more volatile than the market, while a beta of less than 1 indicates that the stock is less volatile than the market.

Stand-alone coefficient is a measure of a stock’s risk that is not related to the market. It is calculated by regressing the stock’s returns against a constant term.

Alpha coefficient is a measure of a stock’s performance that is not explained by the market. It is calculated by regressing the stock’s returns against the market returns and a constant term.

Relevant coefficient is not a term used in finance.

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