The following questions ask about key ideas from chapters 8 and 9.A security analyst estimates the excess return of the equity of a firm by running a regression on the Single- actor Index Model. In his regression output, he obtains a correlation coefficient between the excess return of the market and the excess return of security of two-thirds. What percentage of the variation in his data comes from idiosyncratic firm risk?State in words the two main results of the CAPM.

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