6) Std Dev R2 Beta Std Error 4pts Stock M Stock O 18.3 0.34 0.89 0.16 23.4 0.32 1.11 0.21 a) What porportion of each stock's risk was market risk, and what porportion was specific risk? b) What is the variance of the returns for stock M? What is the specific varaiance? c) What is the confidence interval on Stock O's beta? d) If the CAPM is correct, what is the expected return on Stock M? Assume risk free rate of 5% and an expected market return of 12%. e) Suppose that next year, the market provides a 20% return. Knowing this, what return would you expect from Stock M?