Question 1) Read the box The Beta of a Stock" in Section 4.2 of Stock and Watson: Introduction to Econometrics updated Third Edition Suppose that the value of B is greater than 1 for a particular stock. Show that the variance of (R Rp) for this stock is greater than the variance of (Rm Rf) Suppose that the value of is less than 1 for a particular stock. Is it possible that variance of (R Rf) for this stock is greater than the variance of (Rm Rf) (Hint: Don't forget the regression error)