Problem 8 10 Suppose that the index model for stocks A and B is estimated from excess returns with the following results RA 4 0 0 50RM eA RB 1 2 0 7RM eB OM 17 R squarea 0 26 R squares 0 18 Break down the variance of each stock to the systematic and firm specific components (Do not round intermediate calculations Calculate using numbers in decimal form, not percentages Round your answers to 4 decimal places ) Risk for A Risk for B Systematic Firm specific Problem 8 10 Suppose that the index model for stocks A and B is estimated from excess returns with the following results RA 4 0 0 50RM eA RB 1 2 0 7RM eB OM 17 R squarea 0 26 R squares 0 18 Break down the variance of each stock to the systematic and firm specific components (Do not round intermediate calculations Calculate using numbers in decimal form, not percentages Round your answers to 4 decimal places ) Risk for A Risk for B Systematic Firm specific

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Problem 8 10 Suppose that the index model for stocks A and B is estimated from excess returns with the following results  RA   4 0    0 50RM   eA RB    1 2    0 7RM   eB OM   17   R squarea   0 26  R squares   0 18 Break down the variance of each stock to the systematic and firm specific components  (Do not round intermediate calculations  Calculate using numbers in decimal form, not percentages  Round your answers to 4 decimal places ) Risk for A Risk for B Systematic Firm specific Problem 8 10 Suppose that the index model for stocks A and B is estimated from excess returns with the following results  RA   4 0    0 50RM   eA RB    1 2    0 7RM   eB OM   17   R squarea   0 26  R squares   0 18 Break down the variance of each stock to the systematic and firm specific components  (Do not round intermediate calculations  Calculate using numbers in decimal form, not percentages  Round your answers to 4 decimal places ) Risk for A Risk for B Systematic Firm specific

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Problem 8-10 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 4.0% +

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