please just show work on this and what different steps mean, thanks!

3) Here are data on two companies. The risk-free rate is 4% and the market expected return is 6%. Standard deviation of the market return is 2%. What is the level of systematic and idiosyncratic for stock X? Discuss whether CAPM is doing a good job predicting expected return for stock Y. Company X Y Forecasted return 10% 9% Standard deviation 6% 5% Beta 2 1.5 Answer: Systematic risku Bxx = 22 x 0.022 = 0.0016 =