Question: Problem 8-10 Suppose that the index model for stocks A and Bis estimated from excess returns with the following results FA - 1.0% + 2.45RM

Problem 8-10 Suppose that the index model for stocks A and Bis estimated from excess returns with the following results FA - 1.0% + 2.45RM + en fig - -1.% + 1.BR + es On - 16%; A-squareg - 0.28; A-squareg - 0.21 Break down the variance of each stock to the systematic and firm-specific components (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.) Risk for A Risk for B Systematic Firm-specific

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