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The index model has been estimated for stocks A and B with the following results: RA = 0.12 + 0.665RM + eA RB = 0.04

The index model has been estimated for stocks A and B with the following results: RA = 0.12 + 0.665RM + eA RB = 0.04 + 1.504RM + eB M = 0.325 (eA) = 0.20 (eB) = 0.10 What is the covariance between each stock and the market index? (Round your answers to 4 decimal places.)

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The index model has been estimated for stocks A and B with the following results: RA= 0.12 +0.665RM+eA RB = 0.04 +1.504RM+ eB OM=0.325 olea) = 0.20 oleB) = 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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