The following table shows estimates of the risk of two well-known Canadian stocks: Sun Life Financial...

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The following table shows estimates of the risk of two well-known Canadian stocks: Sun Life Financial Suncor Energy Standard Deviation (%) 18.3 23.4 R2 Beta 0.34 0.89 0.32 1.11 Standard Error of Beta 0.16 0.21 S a. What proportion of each stock's risk was market risk, and what proportion was specific risk? b. What is the variance of the returns for Sun Life Financial stock? What is the specific variance? c. What is the confidence interval on Suncor's beta? d. If the CAPM is correct, what is the expected return on Sun Life? Assume a risk-free interest rate of 5% and an expected market return of 12%. e. Suppose that next year, the market provides a 20% return. Knowing this, what return would you expect from Sun Life? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What proportion of each stock's risk was market risk, and what proportion was specific risk? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number. Sun Life Financial Suncor's Market risk Specific risk % % % % < Required A Required B > The following table shows estimates of the risk of two well-known Canadian stocks: Sun Life Financial Suncor Energy Standard Deviation (%) 18.3 23.4 R2 Beta 0.34 0.89 0.32 1.11 Standard Error of Beta 0.16 0.21 S a. What proportion of each stock's risk was market risk, and what proportion was specific risk? b. What is the variance of the returns for Sun Life Financial stock? What is the specific variance? c. What is the confidence interval on Suncor's beta? d. If the CAPM is correct, what is the expected return on Sun Life? Assume a risk-free interest rate of 5% and an expected market return of 12%. e. Suppose that next year, the market provides a 20% return. Knowing this, what return would you expect from Sun Life? Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E What proportion of each stock's risk was market risk, and what proportion was specific risk? Note: Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number. Sun Life Financial Suncor's Market risk Specific risk % % % % < Required A Required B >