U lools Window Help Chap8-index-models.pdf (page 2 of 55) y Investments (10th edition).pdt (page 316 of 1,080) returns, what would have been the regression intercept for stock A? Q Search the following data for Problems 9 through 14. Suppose that the index mod ks A and B is estimated from excess returns with the following results: R,--2% + 1.2 + eB = 20%; R-square,-.20; R-squareB-.12 What is the standard deviation of each stock? Break down the variance of each stock to the systematic and firm-specific components. What are the covariance and correlation coefficient between the two stocks? What is the covariance between each stock and the market index? For portfolio P with investment proportions of .60 in A and 40 in B, rework Problems 9, 10, and Rework Problem 13 for portfolio Q with investment proportions of .50 in P .30 in the marl index, and .20 in T-bills. A stock recently has been estimated to have a beta of 1.24: a. What will a beta book compute as the "adjusted beta" of this stock? rn