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Question 3 Assume two securities where the index model is estimated with the following results: = = RA RB 4% +0.6 RM = eA 2%

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Question 3 Assume two securities where the index model is estimated with the following results: = = RA RB 4% +0.6 RM = eA 2% + 1.3 RM teb OM = 15%; R-square A = 0.18; R-squarep = 0.15 a = (a) (2 pts) Which stock has more systematic risk? (b) (3 pts) What is the standard deviation of each stock

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