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A stock has a beta of 1.5 and a volatility (standard deviation) of 50%, and the volatility (standard deviation) of the market portfolio is 20%.

A stock has a beta of 1.5 and a volatility (standard deviation) of 50%, and the volatility (standard deviation) of the market portfolio is 20%. What fraction of the stock's variance is idiosyncratic? (Assume the CAPM holds.)

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