Question: Consider the two (excess return) index model regression results for A and B RA -1.2% + 1.6RM R-square 0.676 Residual standard deviation 13.8% RB-0.5% +

Consider the two (excess return) index model regression results for A

Consider the two (excess return) index model regression results for A and B RA -1.2% + 1.6RM R-square 0.676 Residual standard deviation 13.8% RB-0.5% + 1.3RM R-Square = 0.574 Residual standard deviation-12.4% a. Which stock has more firm-specific risk? O StockA Stock B b. Which stock has greater market risk? Stock A O Stock B c. For which stock does market movement has a greater fraction of return variability? O StockA O Stock EB d. If rf were constant at 7% and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock A? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places Intercept

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