Suppose the index model for stocks A and B is estimated with the following results: TA = = 2%+0.9R+a, = 2% +1.3RM +B, M = 18%, and RM = rm -rf. The regression R2 of stocks A and B is 0.45 and 0.35, respectively. Answer the following questions. Total: 15 marks. (a) What is the variance of each stock? (5 marks) (b) What is the firm-specific risk of each stock? (5 marks) (c) What is the covariance between the two stocks? (5 marks)