Consider the two (excess return) index model regression results for A and B:

R_A = 1.1% + 1.4R_M

R-square = 0.604

Residual standard deviation = 11.4%

R_B = 1.6% + 0.8R_M

R-square = 0.488

Residual standard deviation = 9.4%

a.

Which stock has more firm-specific risk?

	Stock A
	Stock B

b.

Which stock has greater market risk?

	Stock A
	Stock B

c.

For which stock does market movement has a greater fraction of return variability?

	Stock A
	Stock B

d.	If rf were constant at 4.8% and the regression had been run using total rather than excess returns, what would have been the regression intercept for stock A? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal place. Omit the "%" sign in your response.)

Intercept

%