As a measurement of risk, which of the following statements about beta is TRUE?

A larger beta for a stock means it will outperform the market at any point in the business cycle.

It is a relative measure that compares how an investment reacts to movements in a specific index.

It is a ratio that compares a company's current rate of return to its average rate of return overtime.

It corresponds to a stock's riskiness in relation to the frequency of dividend payments over a certain period of time.