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The index model has been estimated for stocks A and B with the following result: RA-0.12+0.690RM+ eA RB 0.04+1.544RM+ eB OM 0.350 0(eA-0.20 O(eB) 0.10
The index model has been estimated for stocks A and B with the following result: RA-0.12+0.690RM+ eA RB 0.04+1.544RM+ eB OM 0.350 0(eA-0.20 O(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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