question archive The following table shows estimates of the risk of two well-known Canadian Stocks:StandardDeviation, %R2BetaStandardError of BetaToronto Dominion Bank 25
Subject:FinancePrice: Bought3
The following table shows estimates of the risk of two well-known Canadian Stocks:StandardDeviation, %R2BetaStandardError of BetaToronto Dominion Bank 25 .661.26.09Research in Motion44.08.82.25 What proportion of each stock’s risk was market risk, and what proportion was specific risk?What is the variance of Toronto Dominion? What is the specific variance?What is the confidence interval on Research in Motion’s beta?If the CAPM is correct, what isthe expected return on Toronto Dominion? Assume a risk-free interest rate of 5% and an expected market return of 12%.