What is the covariance between stocks

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The index model has been estimated for stocks A and B with the following results:

R(A) = 0.02 + 1.1Rm

R(B) = 0.02 + 1.2Rm

Additionally, the standard deviation of the market index is 16%.

What is the covariance between stocks A and B?

Reference no: EM131947466

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