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(Solved): Suppose that the index model for stocks A and B is estimated from excess returns with the following ...



Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.4% + 1.15RM + eA RB = -1.5% + 1.3RM + eB ?M = 15%; R?squareA = 0.26; R?squareB = 0.16 What is the standard deviation of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places.



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