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Problem 9-11 Measuring risk The following table shows estimates of the risk of two well-known Canadian stocks: a. What proportion of each stock's risk was

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Problem 9-11 Measuring risk The following table shows estimates of the risk of two well-known Canadian stocks: a. What proportion of each stock's risk was market risk, and what proportion was specific risk? b. What is the variance of the returns for Sun Life Financial stock? What is the specific variance? c. What is the confidence interval on Suncor's beta? d. If the CAPM is correct, what is the expected return on Sun Life? Assume a risk-free interest rate of 5% and an expected marke return of 13% e. Suppose that next year, the market provides a 12% return. Knowing this, what return would you expect from Sun Life? Complete this question by entering your answers in the tabs below. What proportion of each stock's risk was market risk, and what proportion was specific risk? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number. Problem 9-11 Measuring risk The following table shows estimates of the risk of two well-known Canadian stocks: a. What proportion of each stock's risk was market risk, and what proportion was specific risk? b. What is the variance of the returns for Sun Life Financial stock? What is the specific variance? c. What is the confidence interval on Suncor's beta? d. If the CAPM is correct, what is the expected return on Sun Life? Assume a risk-free interest rate of 5% and an expected marke return of 13% e. Suppose that next year, the market provides a 12% return. Knowing this, what return would you expect from Sun Life? Complete this question by entering your answers in the tabs below. What proportion of each stock's risk was market risk, and what proportion was specific risk? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number

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