Question: 1. 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

1. 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 has greater systematic (market) risk? c. Which stock has higher R? d. Which stock has higher alpha? e. Which stock has higher correlation with the market

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