10. The capital asset pricing model (CAPM) can be written as E(Rw:) = Rf + 5i[E(Rm) Rf] using the standard notation. The rst step in using the CAPM is to estimate the stocks beta using the market model. The market model can be written as R4,: = ai + 51:13:72,: + 155,: where R3,; is the excess return for security i at time t, Rm; is the excess return on a proxy for the market portfolio at time t, and a\" is an i.i.d. random disturbance term. The coefcient 51- in this case is also the CAPM beta for security i . Suppose that you had estimated and found that the estimated value of beta for a stock 6 was 1.147. The standard error associated with this coefcient SE(5') is estimated to be 0.0548