Problem set 4 Problem 1 Suppose that the market models for stocks A and B are estimated from realized returns with the following results TA=0.01 + 1.1rm + EA TB = -0.04 + 1.4r + EB where standard deviation of market return is om = 25%, R = 0.5, and Ry = 0.8 2. (2pts) Which stock has more systematic risk? b. (2pts) Which stock has more total risk? c. [2pts) Which stock has more firm-specific risk