6. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA=3%+0.7RM+eARB=2%+1.2RM+eBM=20%;R-squareA=0.2;R-squareB=0.12 a. What is standard deviation of each stock? b. Break down the variance of each stock to systematic and Firm-specific components. c. What are the covariance and correlation coefficients between the two stocks? d. What is the covariance between each stock and the market index? e. For portfolio P with investment proportions of 0.60 in A and 0.40 in B rework parts a,b, and d. f. Rework part e for portfolio Q with investment proportions of 0.50 in P,0.3 in the market index and 0.20 in T-bills