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The following table shows estimates of the risk of two well-known Canadian stocks and their co efficient of determination R 1the market Standard Deviation Standard Beta Error of Beta Toronto Dominion Bank Loblaw 18 28 54 01 16 26 25 a. What proportion of each stock's risk was market risk, and what proportion was specific risk? (Do not round intermediate calculations. Enter your answers as a percent rounded to the nearest whole number.) Market risk Specific risk b. What is the variance of Toronto Dominion? What is the specific variance? (Use percents, not decimals, in your calculations. Do not round intermediate calculations. Round your answers to 2 decimal places.) Toronto Dominion Bank Specific variance c. What is the confidence interval on Loblaw's beta? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places. Enter the lowest value answer first and the highest value answer second in order to receive credit for correct answers. Confidence interval d. If the CAPM is oorrect, what is the expected return on Toronto Dominion? Assume a risk-free interest rate of 6% and an expected market return of 12% (Do not round %to intermediate calculations. Enter your answer as a percent rounded to 2 decimal places Expected return a. What proportion of each stock's risk was market rounded to the nearest whole number.) risk, and what proportion was specific risk? (Do not round intermediate calculations. Enter your answers as a percent Toronto Daminion Bank Loblaw Market risk Specific risk b. What is the variance of Toronto Dominion? What is the specific variance? (Use percents, not decimals, in your calculations. Do not round intermediate calculations. Roun your answers to 2 decimal places.) Torcnto Dominion Bank Variance Specific variance c. What is the confidence interval on Loblaw beta? A negative answer should be indicated by a minus sign. Do not round intermediate cale lations Round your as en to 2 decimal places. Enter the lowest value answer first and the highest value answer second in order to receive credit for correct answers.) Confidence interval d if he CAPM is correct, what is the expected return on Toronto Dominion? Assume a risk froo interest rate of 6% and an expected market return of 12%. Do not round % to intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Expected return e.Suppose that next year the market provides a zero rehurn. Knowing this, what return would you expect from Toronto Dominion? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places) Expected return

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