A security's standard deviation equals 25%, and its random rate of return is summarized as follows:

r_i = 0.04 + 1.45 r_M +_i, _iM = 0.52^1/2;

where M refers to the market portfolio, and _iM is the correlation coefficient between security i and the market portfolio. It is assumed that _i and r_M are uncorrelated.

(Keep 4 decimal places to your answers.)

What is the security's beta ____________

What is the variance of the market portfolio _____________

What are its systematic and diversifiable risks

Systematic Risk: _________ ; Diversifiable Risk: ____________