Question
The index model has been estimated for stocks A and B with the following results RA = 0.05 + 0.26RM + eA. RB = 0.02
The index model has been estimated for stocks A and B with the following results
RA = 0.05 + 0.26RM + eA. RB = 0.02 + 1.07RM + eB. M = 0.37; (eA) = 0.22; (eB) = 0.08. The covariance between the returns on stocks A and B is
Round your answer to 4 decimal places. For example if your answer is 3.205%, then please write down 0.0321.
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Investments An Introduction
Authors: Herbert B Mayo
11th Edition
1133936520, 9781133936527
