Standard Dev
Stock A	25%
Stock B	15%
Market	20%

	Stock A	B	Market
Stock A	1	.5	.3
Stock B	.5	1.	8
Market	.3	.8	1

The first table shows the stdev of returns for Stock A, Stock B and the Market over the last five years. The second table shows the correlations between the returns of stocks and the markets.

a. Calculate CAPM beta for each stock

b. Which stock has a greater total risk, how do you know?

c. Which stock had the greater market risk, how do you know?

d. Which stock had the greater non-market risk? how do you know?