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The index model has been estimated for stocks A and B with the following results: R A = 0.12 +0.675 R M + e A
The index model has been estimated for stocks A and B with the following results:
RA= 0.12 +0.675RM+eA
RB= 0.04 + 1.520RM+eB
M= 0.335
(eA) = 0.20
(eB) = 0.10
What is the correlation coefficient between the two stocks?(Round your answer to 4 decimal places.)
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