Question: **Use the following data for Problems 9 through 14. Suppose that the index model for stocks A and B is estimated from excess returns with

**Use the following data for Problems 9 through 14. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3% + .7RM + eA RB = 2% + 1.2RM + be M = 20%; R-squareA = .20; R-squareB = .12 9. What is the standard deviation of each stock? 10. Break down the variance of each stock into its systematic and firm-specific components

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