2) Maggie wants to quantify the historical risk of Seattle Genetics. She decides to use the CAPM model and runs a regression of Seattle Genetics's excess returns on the excess market return from 2002-2017. She also estimates the annualized total volatility of Seattle Genetics's excess returns to be 52.39% based on annualizing the standard deviation of SGEN's monthly excess returns. Based on the CAPM beta, what is the CAPM expected return for Seattle Genetics's stock? What is Seattle Genetics's idiosyncratic volatility? If the stock market's return is +10% in 2018, what do you expect Seattle Genetics's stock return to be?