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The beta for a certain stock is 1.15, the risk-free rate is 5 percent, and the expected return on the market is 13 percent. Complete
The beta for a certain stock is 1.15, the risk-free rate is 5 percent, and the expected return on the market is 13 percent. Complete the following table to decompose the stock's return into the systematic return and the unsystematic return. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Actual Returns Unexpected Returns Systematic Portion Unsystematic Portion () [R - E(R)] [RM E(RM)] * Year R RM R-E(R) [RM - E(RM)] * RM E(RM) % 2012 10 12 % % % 2013 11 8 % % % % 2014 % % % % (8) (6) (11) 14 2015 % % % 2016 28 7 % % %
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