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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 = 3.2% + 1.20

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3.2% + 1.20RM + eA RB = 1.4% + 1.25RM + eB M = 30%; R-squareA = 0.28; R-squareB = 0.10

What is the correlation coefficient between the two stocks?

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