The index model has been estimated for the returns of stocks A and B, denoted by...

The index model has been estimated for the returns of stocks A and B, denoted by R_A and R_B, on the return on the market denoted by R_M, with the following results:
R_A = 0.01 + 0.8R_M + e_A.
R_B = 0.02 + 1.2R_M + e_B.
The standard deviation of market returns is 0.2; the idiosyncratic risk (standard deviation of e_A) of stock A is 0.10; and that for stock B is 0.20.
The standard deviation for stock A is

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

As nothing is mentioned, answers are rounded in decimals, till 4 places, as well as in %, rounded to 2 decimals

As it look like we need both standard deviation for A and B, i have provided both

jeff jeffy answered 1 year ago

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