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4. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 3%+0.7RM+eA RB= -2%+1.2RM+eB ?
4. Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA= 3%+0.7RM+eA RB= -2%+1.2RM+eB ? 2 (eA ) = 7.84%, ? 2(eB ) = 42.24%, The market inde...
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Fundamentals of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
8th Edition
978-0073530628, 978-0077861629
