You are recalculating the risk of Ace stock in relation to the market index, and you find that the ratio of the systematic variance to the total variance has risen. What does this indicate?
1) The risk of Ace stock has increased compared to the market index
2) The risk of Ace stock has decreased compared to the market index
3) The risk of Ace stock is now equal to the market index
4) Cannot be determined based on the given information