Question: The index model has been estimated from the excess returns for stock A with the following results: R A = 12.00% + 1.60 R M
The index model has been estimated from the excess returns for stock A with the following results:
RA = 12.00% + 1.60RM + eA
M = 24.00%
(eA) = 19.00%
What is the standard deviation of the return for stock A?
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