Use the following output of a regression of the monthly returns of stock X against the returns of the S&P 500 index to answer the following questions. We regressed 60 months of returns for stock X against 60 months of returns for the S&P 500 index. The output is below:

Multiple R	0.35
R-squared	0.12
Standard Error	0.0845
Observations	60

	Coefficients	Standard Error	t-Stat	p-Value
Intercept	4.05	15.44	0.26	0.80
Market	1.32	0.97	1.36	0.10

1. Given the table above, what would be the percentage of the variation in the stocks returns explained by the market variance or fluctuations?
2. What is the beta of the stock? Would you conclude stock X is a cyclical stock or defensive stock based on the beta?
3. What is the firm-specific standard deviation (risk) of the stock?