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A company's stock has a beta of 1 . 2 , and its return R 1 , t has the following structure: R 1 ,

A company's stock has a beta of 1.2, and its return R1,t has the following structure:
R1,t=1.2RM,t+e1,t.
The stock price was $100 in year 0. The following year, the company was sued for fabricating its financial statements. In response, its stock price fell to $60, and no dividend was paid. In the same year, the market return was 5%. Find the amount of return attributable to the company-specific news (lawsuit). PLEASE FIND A WAY TO ANSWER THIS.
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