Question: Consider the two ( excess return ) index model regression results for A and B:RA = 1 % 1 . 2 RMR - square =

Consider the two (excess return) index model regression results for A and B:RA =1%1.2RMR-square =.576Residual standard deviation =10.3%Rp =-2%.8RR-square =436Residual standard deviation =9.1%a. Which stock has more firm-specific risk?b. Which has greater market risk?c. For which stock does market movement explain a greater fraction of return variability?

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