Question: please answer and show work Intro Assume that the single index model is valid. You've collected the following information about excess returns for two stocks,

please answer and show work please answer and show work Intro Assume that the single index model

Intro Assume that the single index model is valid. You've collected the following information about excess returns for two stocks, A and B, their residual standard deviations, and the standard deviation of the macroeconomic factor, M : RA=0.1+0.9RM+eA - RB=0.2+1.3RM+eB o(eA)=0.4 - o(eB)=0.2 - M=0.29 Part 1 Attempt 1/10 for 10 pts. What is the standard deviation of stock A? Part 2 Attempt 1/10 for 10 pts. What is the standard deviation of stock B? Part 3 Attempt 1/10 for 10 pts. What is the covariance between the returns on stocks A and B

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