1.

The index model has been estimated for stock A with the following results. What is the standard deviation of stock A's total return?

R A = 0.03 + 1.5*R M+e A.

Assume M= 0.20; e A= 0.39.

Round your answer to 4 decimal places.

2.

The following are estimates for a stock A.

Stock	Expected ret.	beta	firm-specific variance, or Var(e)
A	0.12	1.7	0.26

The market index has a standard deviation of 0.22, and the risk-free rate if 0.02

What percentage of stock A's total risk is attributable to systematic risk (or market risk)? Here consider variance as the risk measure.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.