Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R_A = 2.6% + 0.90R_M + e_A R_B = 2.0% + 1.20R_M + e_{B M} = 26%; R-square_A = 0.21; R-square_B = 0.12 Break down the variance of each stock to the systematic and firm-specific components. (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.)

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.6% + 0.90RM + A RB = -2.0% + 1.20RM + eg OM = 26%; R-squarea = 0.21; R-squares = 0.12 Break down the variance of each stock to the systematic and firm-specific components. (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.) Risk for A Risk for B Systematic Firm-specific