Final answer:
Beta in the CAPM model is not the coefficient of variation of the company divided by the coefficient of variation of the market index; it is a measure of volatility compared to the market as a whole.
Step-by-step explanation:
In the Capital Asset Pricing Model (CAPM), beta (β) does not represent the quotient of the coefficient of variation of the company divided by the coefficient of variation of the market index. Instead, beta is a measure of the volatility, or systematic risk, of a security or portfolio in comparison to the market as a whole. The correct definition of beta in CAPM is the covariance between the return of the asset and the return of the market divided by the variance of the market returns.