Question 3 2/4 points (graded) Stock ABC has market beta of Babc = 0.7, expected return of ABC = 4.4% per year, and return volatility of O ABC = 37%. The annual risk- free rate is ry = 2%. The expected return on the market portfolio is M = 8%. The market return volatility is om = 20%. Report all answers with 2 decimal places of precision. (a) Compute the CAPM Jlpha of ABC. QABC -1.8 96 (b) Compute the volatility of the idiosyncratic component of return of ABC. Old 29 % X