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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R A = 1.8% + 0.75

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

RA = 1.8% + 0.75RM + eA

RB = 2.0% + 1.1RM + eB

M = 23%; R-squareA = 0.18; R-squareB = 0.10

What is the standard deviation of each stock?

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