Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 3% + 0.7RM + eA RB = 2% + 1.2RM + eB M = 20%; R-squareA = 0.20; R-squareB = 0.12 What is the covariance between each stock? (Calculate using numbers in decimal form, not percentages. Do not round your intermediate calculations. Round your answers to 3 decimal places.)

COVARIANCE FOR

STOCK A ??

STOCK B ??