You currently hold a portfolio that has SPY, MSFT, AAPL, and WFC in it. You are considering adding BA stock to it. Table below summarizes historical data analysis for (1) SPY, (2) Portfolio of (SPY, MSFT, AAPL, and WFC), (3) BA stock, and (4) New Portfolio that is based on the old portfolio with BA stock added to it.

	SPY	Portfolio (SPY, MSFT, AAPL, WFC)	BA	Portfolio + BA
Summary Statistics
Average	0.70%	1.04%	1.43%	1.09%
Variance	0.0014	0.0022	0.0038	0.0020
St. Dev.	3.71%	4.64%	6.20%	4.43%
Regression Analysis Summary
Intercept		0.00204	0.00793	0.00287
Beta	1	1.20562	0.92070	1.15489
Var (residuals)		0.000149	0.002676	0.000126
St. Dev. (residuals)		1.22%	5.17%	1.12%
Rf	.05%
R (CAPM)
Jensen Alpha
Treynor Index	0.0065	0.0082	0.0150	0.0090
Sharpe Ratio	0.1740	0.2142	0.2231	0.2350
M^2

1. Based on the analysis of Treynor and Sharpe Indexes for the 4 investment options, and other data provided in the table, what can you conclude:

a. BA stock must have a lot of firm specific risk compared to other investments

b. BA stock must have a lot of market risk compared to other investments

c. BA stock must have very little firm specific risk compared to other investments

d. BA stock must have very little of market risk compared to other investments