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Are your regression results valid under the assumptions of the classical linear regression model (CLRM) if (r7t rf ) and (rm rf ) have a

Are your regression results valid under the assumptions of the classical linear regression model (CLRM) if (r7t rf ) and (rm rf ) have a non-zero covariance? Explain.

r7t is excess return on a stock

rm is is excess return on market

rf is riskfree rate

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