Question
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA 38+0.7RM + A RB
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA 38+0.7RM + A RB -2 +1.2RM + eB OM 20%; R-square 0.20; R-squares 0.12 What is the standard deviation of each stock? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Standard Deviation Stock A Stock B. % %
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
