24 Suppose that the index model for Stocks A and B is estimated with the following results: RA= -2% + 1.65RM + EA RB = 4% + 1.10RM + eB R-square (A) = 0.15 R-square (B) = 0.25 Residual (eA) Standard Deviation of Stock A = 0.18 Residual (eg) Standard Deviation of Stock B = 0.14 Based on the information above, provide the answer to the following questions in the answer box. a. Which stock has higher market risk? (need to say the reason) b. Which stock has higher firm-specific risk? (need to say the reason) c. Which stock is a better investment in a well-diversified portfolio? Why? (need to say the reason) 9 pts