The following table shows estimates of the risk of two well-known Canadian stocks and their coefficient of determination (R2) to the market:

Toronto Dominion Bank has the following:

Standard Deviation (%) = 17

R²= .53

Beta = .87

Standard Error of Beta = .15

Loblaw has the following:

Standard Deviation (%) = 25

R²= .04

Beta = .25

Standard Error of Beta = .24

a. What proportion of each stock's risk was market risk, and what proportion was specific risk? (Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number.)

Find the following for the Toronto Dominion Bank and Loblaw

Toronto Dominion BankLoblaw

Market risk%%

Specific risk%%

b. What is the variance of Toronto Dominion? What is the specific variance? (Use percents, not decimals, in your calculations. Do not round intermediate calculations. Round your answers to 2 decimal places.)

For the Toronto Dominion Bank find the following:

Variance

Specific variance

c. What is the confidence interval on Loblaw's beta? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Enter the lowest value answer first and the highest value answer second in order to receive credit for correct answers.)

find the Confidence interval_________%to_________ %

d. If the CAPM is correct, what is the expected return on Toronto Dominion? Assume a risk-free interest rate of 5% and an expected market return of 10%. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Find the Expected return%

e. Suppose that next year the market provides a zero return. Knowing this, what return would you expect from Toronto Dominion? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Find the Expected return%