Suppose the assumptions behind the Capital Asset Pricing Model hold. The risk-free rate is 0.5% and the expected market return is 9%. The stan- dard deviation of the market portfolio is 15%. Microsoft Corp. (MSFT) has a beta of 0.79 and a standard deviation of 35%. (a) What is the expected return of MSFT? (b) What fraction of the total risk of MSFT is idiosyncratic? (c) Suppose that the standard deviation of your efficient portfolio is 16%. What is its expected return?