(a) (10 points) Consider the CAPM model regression results for stock A and stock B, where Ra, RB and RM are average returns: RA- Rf = -1% +0.5(RM Rf), where RA is the return of stock A, RM is the return of the market, and Rf is the risk-free return. We are also told that the regression for stock A yielded Residual standard deviation = 5.3%. RB - Rf = 3% + 1.2(RM - Rf), where Rp is the return of Stock B, and RM, Rf as before. We are also told that the regression for stock B yielded Residual standard deviation = 3.8%. Answer briefly the following questions: i) (5 points) Which stock has more idiosyncratic risk? Explain. ii) (5 points) Which stock has greater systematic risk? Explain