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1 Check my work 3 Problem 8-8 10 points Consider the two lexcess return index model regression results for A ens B. 4 = -1, h + 1.34 1 BON R-square=0.652 Residual standard deviation - 13% P.IT Re - 1.60 + 8.924 Fi-square-0.594 Residual standard deviation - 115 a. Which slock has more firm-specific risk? Pr Stock StDCKD b. Which stack has greater market risk? Stock A Stock B c. For which stack does market movement has a greater fraction of return variability? Stock Stock d. If rf were constent al 6.4% and the regression had been run using total rather than excess retums, whet would heve been the regression inercept for stock A? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places. Interopl 1 Check my work 3 Problem 8-8 10 points Consider the two lexcess return index model regression results for A ens B. 4 = -1, h + 1.34 1 BON R-square=0.652 Residual standard deviation - 13% P.IT Re - 1.60 + 8.924 Fi-square-0.594 Residual standard deviation - 115 a. Which slock has more firm-specific risk? Pr Stock StDCKD b. Which stack has greater market risk? Stock A Stock B c. For which stack does market movement has a greater fraction of return variability? Stock Stock d. If rf were constent al 6.4% and the regression had been run using total rather than excess retums, whet would heve been the regression inercept for stock A? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places. Interopl

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