The index model has been estimated for stocks A and B with the following results: R_A= 0.03 + 0.85R_M+ e_A R_B= 0.01 + 1.55R_M+ e_B

The standard deviation of the market index is 27%; the residual standard deviation of the error terms for stock A is 22%;the residual

standard deviation of the error termsfor stock B is 30%. What is the covariance between the returns on stocks A and B?

Enter your answer rounded to two decimal places. Do not enter % in the answer box. For example, if your answer is 0.12345 or 12.345% then enter as 12.35 in the answer box.