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QUESTION 14 The index model has been estimated for stocks A and B with the following results: RA=0.01 0.5RM+eA Rg=0.02 +1.3RM+ eB OM-0.25, ofeA) -

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QUESTION 14 The index model has been estimated for stocks A and B with the following results: RA=0.01 0.5RM+eA Rg=0.02 +1.3RM+ eB OM-0.25, ofeA) - 0.20, oles) - 0.10 The correlation between A and B is O 0.51 0.45 0.3 0.03 0.04

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