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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: + RA = 1.0% + 0.45RM

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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: + RA = 1.0% + 0.45RM eA RB = -1.0% + 1.0RM + eB OM = 16%; R-square A = 0.28; R-squares = 0.21 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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