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The index model has been estimated for stocks A and B with thefollowing results: RA = 0.03 + 0.7RM + eA. RB = 0.01 +

The index model has been estimated for stocks A and B with thefollowing results: RA = 0.03 + 0.7RM + eA. RB = 0.01 + 0.9RM + eB.?M = 0.35; ?(eA) = 0.20; ?(eB) = 0.10. The systematic component of 2 answers

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