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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.0% + 0.40RM +

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 2.0% + 0.40RM + eA RB = 1.8% + 0.9RM + eB M = 15%; R-squareA = 0.30; R-squareB = 0.22 What is the standard deviation of each stock?

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