Question: Consider the following two regression lines for stocks A and B in the following figure. a. Which stock has higher firm-specific risk? b. Which stock

Consider the following two regression lines for stocks A and B in the following figure.

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a. Which stock has higher firm-specific risk?
b. Which stock has greater systematic (market) risk?
c. Which stock has higher R2?
d. Which stock has higher alpha?
e. Which stock has higher correlation with themarket?

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