Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA - 4.0% + 0.50RM + eA RB - -1.2% + 0.7RM + eB OM - 17%; R-squarea - 0.26; R-squareg -...

Extracted text: Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA - 4.0% + 0.50RM + eA RB - -1.2% + 0.7RM + eB OM - 17%; R-squarea - 0.26; R-squareg - 0.18 Break down the variance of each stock to the systematic and firm-specific components. (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.) Risk for A Risk for B Systematic Firm-specific