Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R_A = 4.0% + 0.50R_M + e_A R_B = 1.2% + 0.70R_M + e_{B M} = 17%; R-square_A = 0.26; R-square_B = 0.18 Break down the variance of each stock to the systematic and firm-specific components.

Please state the systematic AND firm-specific risks association with Risk A and Risk B. Thank you!