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7 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA 5.0% 1.3 10

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7 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA 5.0% 1.3 10 points RB -2.0% 1.6 + ON 20%; -squares 0.20; R-squares -0.12 eBook What is the covariance between each stock and the market index? (Calculate using numbers in decimal form, not percentages. De not round your intermediate calculations. Round your answers to 3 decimal places.) Covariance References Stock A Stock B Save & Ex Check m

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