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The index model has been estimated for stocks A and B with the following results: RA= = 0.12 +0.670RM+A RB=0.04 +1.512RM + B M=
The index model has been estimated for stocks A and B with the following results: RA= = 0.12 +0.670RM+A RB=0.04 +1.512RM + B M= 0.330 (e) = 0.20 (eB) = 0.10 What is the covariance between each stock and the market index? (Round your answers to 4 decimal places.) Stock A covariance Stock B covariance
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
