Assume that CAPM is an appropriate model for pricing assets in the economy. Consider the following information about the market portfolio and the risk$-$free rate:

E$($Rm$)=15\%$

$\backslash$sigma m$=20\%$

Rf $=4\%$

Also, assume that the common stock of an Athlete Corporation has E$($RB$)=25\%$ and $\backslash$sigma $2$B $=52\%.$

Required:

a$.$ What is the systematic variance of the Athletes common stock?

b$.$ What is the unsystematic variance of the Athletes common stock?

Note: For all requirements, do not round intermediate calculations. Round your answers to $3$ decimal place.

We can decompose the total variance:

The systematic variance: ${}_i^2{}_m^2$

Unsystematic variance: ${}_{}^2$