Question
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: R A = 3% + 0.90
Suppose that the index model for stocks A and B is estimated from excess returns with the following results:
| RA = 3% + 0.90RM + eA | |
| RB = 2.0% + 1.20RM + eB | |
| M = 26%; R-squareA = 0.21; R-squareB = 0.12 |
| What are the covariance and correlation coefficient between the two stocks? (Calculate using numbers in decimal form, not percentages. Do not round intermediate calculations. Round your answers to 4 decimal places.) please this is the 3rd i am posting this same question |
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Multinational Financial Management
Authors: Shapiro A.C.
9th International Edition
8126536934, 9788126536931
