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
Chapter10: Statistics
Section10.5: Comparing Sets Of Data
Problem 13PPS
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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
%
%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3ed123d8-2dc9-493c-a492-9e3e7b2a1379%2Ff8fa0f04-3c72-453b-bf90-8d3fb3ed0f43%2Fjtcpbyk_processed.jpeg&w=3840&q=75)
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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