1)

Consider the index model regression results for A: RA = 0.01 + 1.2RM R square= 0.576 Residual standard deviation = 10.3%

If rf were constant at 0.06 and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock A?

2)

The following are estimates for a stock A.

Stock	Expected ret.	beta	firm-specific variance, or Var(e)
A	0.09	1.9	0.27

The market index has a standard deviation of 0.24, and the risk-free rate if 0.02

What percentage of stock A's total risk is attributable to systematic risk (or market risk)? Here consider variance as the risk measure.

Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.