I requested informaion on this problem, but the problem example you sent back had different numbers and was hard to get number to match. The following table shows estimates of the risk of two well-known Canadian stocks:

Standard Deviation (%) R 2 Beta Standard Error of Beta

TDM 13 0.49 0.83 0.11

LLW 21 0.01 0.21 0.25

What proportion of each stock's risk was market risk, and what proportion was specific risk? What is the variance of TDM Bank? What is the specific variance? What is the confidence interval on LLW's beta? If the CAPM is correct, what is the expected return on TDM Bank? Assume a risk-free interest rate of 5% and an expected market return of 12%. Suppose that next year the market provides a zero return. Knowing this, what return would you expect from TDM Bank?