Consider the two (excess re turn) index model regression result s for A and B:

R_A = 1% + l.2R_M
R-square = .576
Residual standard deviation = 10.3%
R_n = - 2 % + .8 R_M
R-square = .436
Residual standard deviation = 9.1 %

a. Which stock has more firm-specific risk?
b. Which has greater market risk?
c. F or which s toc k does market movement explain a greater fraction of return variability?
d. If r_f were constant at 6% and the regression had been run us in g total rather than excess returns, what would have been the regress ion intercept for stock A?