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What are the covariance and correlation coefficient

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Suppose that the index model for stocks A and B is estimated from excess returns with the following results:

RA = 2.5% + 0.60RM + eA

RB = -1.5% + 0.70RM + eB

σM = 19%; R-squareA = 0.24; R-squareB = 0.18

What are the covariance and correlation coefficient between the two stocks?

Reference no: EM132481286

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