You estimate the market model for stocks i and j, using monthly returns. Tint - Trt = 0.2% +0.7 * (Im.t - rfc) +eit Tj.t - 8,0 = -0.8% +1.8*(Im,t - 912) + e;t Also Om=10% (the standard deviation of the market excess return). For stock i, we know that oe=10% For stockj, we know that R2 in the market model regression is 0.59. f. (3 points) What is the covariance and correlation between stocks i and j? You estimate the market model for stocks i and j, using monthly returns. Tint - Trt = 0.2% +0.7 * (Im.t - rfc) +eit Tj.t - 8,0 = -0.8% +1.8*(Im,t - 912) + e;t Also Om=10% (the standard deviation of the market excess return). For stock i, we know that oe=10% For stockj, we know that R2 in the market model regression is 0.59. f. (3 points) What is the covariance and correlation between stocks i and j