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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.0% + 1.05RM +

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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.0% + 1.05RM + eA RB -1.2% +1.20RM + eB = OM = 29.0%; R-square = 0.29; R-square= 0.14 What is the covariance between each stock and the market index? (Calculate using numbers in decimal form, not percentages. Do not round your intermediate calculations. Round your answers to 3 decimal places.) Covariance Stock A Stock B

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