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Problem 8-9 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.2% +
Problem 8-9 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.2% + 0.80RM + eA RB = -2.2% + 1.2RM + eB OM = 24%; R-squareA = 0.16; R-squares = 0.12 What is the standard deviation of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Standard Deviation % Stock A Stock B %
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