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Q4(c) The Single Index model has been estimated for Stock A and Stock B with the results shown in the table below, and where o

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Q4(c) The Single Index model has been estimated for Stock A and Stock B with the results shown in the table below, and where o m=0.35, o (EA)=0.20, and o(Es)=0.10. 4 Calculate the covariance between the returns on Stock A and Stock B. Stock Stock A Stock B Index Model R=0.03+0.7RM+CA R=0.01+0.9Rm+Es [5 Marks)

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