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Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R A = 3.5% + 0.65

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R A = 3.5% + 0.65 R M + e A R B = -1.6% + 0.80 R M + e B ? M = 21...

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