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1 Suppose that index model for Stocks A and B is estimated from excess returns with the following results: Ra 004+0.6Rmrea. Rb= 0.04+1.3Rm+eb. Risk on

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1 Suppose that index model for Stocks A and B is estimated from excess returns with the following results: Ra 004+0.6Rmrea. Rb= 0.04+1.3Rm+eb. Risk on the market is 30% R-squared of Ais 30%, R-squared of Bis 40%, systematic risk for Ais Select one: O a. 124 Ob 324 O c.224 O d. 424

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