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Suppose that the index model for stocks A and B is estimatedfrom excess returns with the following results:RA = 2.5% + 0.60RM + eARB =

Suppose that the index model for stocks A and B is estimatedfrom excess returns with the following results:RA = 2.5% + 0.60RM + eARB = รข??1.5% + 0.70RM + eB?M = 19%; R-squareA = 0.24; R-squareB = 0 answers

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