Question: Estimating a single index model with four observations has revealed the following results: Rit=2.473+1.011Rmt+it The four market returns used in the estimation were: 9%,5%,1% and

Estimating a single index model with four observations has revealed the following results: Rit=2.473+1.011Rmt+it The four market returns used in the estimation were: 9%,5%,1% and 3% and the four residuals are 0.4286,0.4725,4.4615 and 3.5604 . Calculate the total amount of risk, the common factor risk and the firm specific risk of asset-i

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