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You have estimated the CAPM for Facebook stock (FB). The estimated beta of FB is 1.1. The estimated residual variance of the excess return on

You have estimated the CAPM for Facebook stock (FB). The estimated beta of FB is 1.1. The estimated residual variance of the excess return on FB is 0.0010. The estimated variance of the market excess return is 0.0006. What is the relative importance of the systematic risk to total risk (i.e., the model fit to the data) in the excess return on FB?

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