Consider the two $($excess return$)$ index model regression results for A and $B.$

$R_A=-1\mathrm{.}8\%+2R_M$

$R-$square $=0\mathrm{.}640$

Residual standard deviation $=12\mathrm{.}6\%$

$R_B=1\mathrm{.}48+1R_M$

$R-$square $=0\mathrm{.}590$

Residual standard deviation $=11\mathrm{.}4\%$

Required:

a$.$ Which stock has more firm$-$specific risk?

b$.$ Which stock has greater market risk?

c$.$ For which stock does market movement explain a greater fraction of return variability?

d$.$ If $r_f$ were constant at $6\%$ and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock $A?.$

Complete this question by entering your answers in the tabs below.

Required A

Required B

If $r_f$ were constant at $6\%$ and the regression had been run using total rather than excess returns, what would haye been the regression intercept for stock $A?$

Note: Negative value should be indicated by a minus sign. Round your answer to $2$ decimal places.

Intercept

$\%$