Just need the answer to A. Thank you.

The single-index model for stock iis ci -rf =ai+ Bi(rM-of) + ei. The single-index model for stock jis ci -rf = aj+ Bi (M-of)+ ej. The standard deviation of the stock market return is oM=0. 12. The standard deviation of ei is cei=0.3. The standard deviation of ej is dej=0.15. The market beta equals 1.5 for stock and 2 for stock j or Bi=1.5, Bj=2. The expected stock market return E(M) is 12% and the risk-free rate of is 5%. Suppose the simple CAPM is valid. (a) Calculate the systematic risk, firm-specific risk, and total risk of both stocks and j. (b) Which stock has lower total risk and which stock has a lower expected return? (c) Does the stock with the lower total risk have a lower expected return? Explain. The single-index model for stock iis ci -rf =ai+ Bi(rM-of) + ei. The single-index model for stock jis ci -rf = aj+ Bi (M-of)+ ej. The standard deviation of the stock market return is oM=0. 12. The standard deviation of ei is cei=0.3. The standard deviation of ej is dej=0.15. The market beta equals 1.5 for stock and 2 for stock j or Bi=1.5, Bj=2. The expected stock market return E(M) is 12% and the risk-free rate of is 5%. Suppose the simple CAPM is valid. (a) Calculate the systematic risk, firm-specific risk, and total risk of both stocks and j. (b) Which stock has lower total risk and which stock has a lower expected return? (c) Does the stock with the lower total risk have a lower expected return? Explain