Compute systematic risks of stock a and b

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You are given following information on returns of stock A, stock B and the market index. Stock A standard deviation = 35%; stock B standard deviation = 24%; stock A residual standard deviation = 30%; stock B residual standard deviation = 10%; market standard deviation (sigma M) = 20%. Compute systematic risks of stock A and B. (You must show all necessary workings)

Reference no: EM133002776

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