Suppose that the index model for stocks A and $B$ is estimated from excess returns with the following results:

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: = 2.6% + .9RM + eA RB- 2.0% + 1.2RM + eB 0M = 26%; R-squareA = 0.21; R-squareB = 0.12 Break down the variance of each stock to the systematic and firm-specific components. Note: Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. For example use "20" for calculation if standard deviation is provided as 20%. Round your answers to nearest whole number. Hints: Connect uses notations where RA is stock A's return minus the risk-free rate, RM is market return minus the risk-free rate etc. Remember that the stock's total variance = systematic variance + firm-specific variance. Total variance can be calculated using the R-squared value: R-squared = systematic variance/total variance.