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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 4 . 0 %
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA RM eA RB RM eB sigma M ; RsquareA ; RsquareB Break down the variance of each stock to the systematic and firmspecific components. Note: Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. For example use for calculation if standard deviation is provided as Round your answers to nearest whole number.
Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
RA RM eA
RB RM eB
sigma M ; RsquareA ; RsquareB
Break down the variance of each stock to the systematic and firmspecific components.
Note: Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. For example use for calculation if standard deviation is provided as Round your answers to nearest whole number.
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