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 % %

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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-squareA = 0.30; R-squareB = 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
%
%
Transcribed Image Text: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-squareA = 0.30; R-squareB = 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 % %
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