Consider the two (excess return) index model regression results for A and B : R A = 0.8% + 1 R M R -square = 0.588 Residual standard deviation = 10.8% R B = –1.2% + 0.7 R M R -square = 0.452 Residual...

Consider the two (excess return) index model regression results forA andB:

R_A
 = 0.8% + 1R_M

R-square = 0.588

Residual standard deviation = 10.8%

R_B
 = –1.2% + 0.7R_M

R-square = 0.452

Residual standard deviation = 9%

a.
Which stock has greater market risk?

multiple choice

b.
For which stock does market movement has a greater fraction of return variability?

multiple choice

c.
Ifr_f
 were constant at 4.5% and the regression had been run using total rather than excess returns, what would have been the regression intercept for stockA?(
Negative value should be indicated by a minus sign.
 Round your answer to 2 decimal places.)