Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA=3.6+1.20RM+eARB=1.6S1.5PM+FBOM=16x;R-vquareA=0.25;R-squareB=0.15 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA=3.6+1.20RM+eARB=1.6S1.5PM+FBOM=16x;R-vquareA=0.25;R-squareB=0.15