Suppose that the index model for stocks A and B is estimated from excess returns with the following results:RA= 2.0% + 0.40RM + eARB = -1.8%+ 0.9RM + eBOM = 15%; R-squareA = 0.30; R-squareB = 0.22What is the standard deviation of each stock?Note: Do not round intermediate calculations. Round your answers to 2 decimal places.Stock AStock BStandard Deviation%%

The provided information is as follows:The equation for the model A is given as .The equation for…

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 2.0%+ 0.40RM + EA RB = -1.8%+0.9RM + eB OM 15% ; R-squareд = 0.30; R-squareg = 0.22 What is the standard deviation of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Standard Deviation % %

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 2.0%+ 0.40RM + EA RB = -1.8%+0.9RM + eB OM 15% ; R-squareд = 0.30; R-squareg = 0.22 What is the standard deviation of each stock? Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Stock A Stock B Standard Deviation % %

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 24PFA

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