What is the unsystematic component of the variance for stock

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Suppose that the index model for stock A is estimated from excess returns with the following results:

σ M = 0.20

RA=3%+1.1 RM+eA , RSQ-A=0.4

Problem 1: What is the unsystematic component of the variance for stock A? Please round your answer to four decimal places.

Reference no: EM132834276

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