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Suppose the regression analysis of stock Y shows that R-sq is 75%, residual standard deviation is 0.21, the beta coefficient is 0.9, and the constant
Suppose the regression analysis of stock Y shows that R-sq is 75%, residual standard deviation is 0.21, the beta coefficient is 0.9, and the constant term is 1.5%. The percentage of the stock return variation due to firm-specific surprises is 25%.
a.)If the market excess return has an unexpected change of 1.5%, the stock Y tend to respond by ______%
b.) The total risk of the stock is ________%
c.) The variance of the market is ________%
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