Question: Use the following data for Question#6 to Question#8. Consider the index model regression results for stocks A and B : RA=1%+1.5RMR-square =0.436 Firm-specific standard deviation

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Use the following data for Question\#6 to Question\#8. Consider the index model regression results for stocks A and B : RA=1%+1.5RMR-square =0.436 Firm-specific standard deviation (eA)=20% RB=2%+0.8RMR-square =0.576 Firm-specific standard deviation (eB)=15% Which stock has more firm-specific risk? Type 1 for stock A and 2 for stock B

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