QUESTION 5 The table below contains output from a CAPM regression based on weekly data of returns in decimal form for the 2-year period that you have owned this stock. That is, a return data equal to 0.01 equals 1% return. R-squared of the regression: 0.85 Coeff. t-statistics Intercept 0.001 8.92 Regression coefficient of the independent variable 0.10 12.54 A friend of you is of the opinion that there must be something wrong with the regression since the very high R-squared indicates that most of the risk of this stock is systematic risk and therefore the beta coefficient cannot be as low as estimated. Furthermore, your friend says that the alpha of the regression is large and significant, which would not be the case if the CAPM is the correct model of asset returns. He therefore recommends that you use another asset-pricing model that better captures the variation in stock returns. Provide detailed comments on the correctness of your friend's arguments. (10p)