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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: AA = 3% + 0.7AX +
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: AA = 3% + 0.7AX + 9A Ag = -2% + 1.24x + # = 20%; A-square A = 0.20; A-squareg = 0.12 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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