Question: The table below contains output from a CAPM regression based on monthly data of returns in decimal form for the 5-year period that you have

The table below contains output from a CAPM regression based on monthly data of returns in decimal form for the 5-year period that you have owned this stock.

R-squared of the regression: 0.20

Coeff. t-statistics Intercept 0.005 0.80

Regression coefficient of the independent variable 0.89 8.15

Q: Explain carefully the regression output and how to determine the fraction of the total risk that is unsystematic risk.

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