The index model has been estimated for stocks A and B with the following results:...
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The index model has been estimated for stocks A and B with the following results:
RA = 0.12 +0.640RM + eA
RB = 0.04 + 1.464RM + eB
M = 0.300
(eA) = 0.20
(eB) = 0.10
What is the correlation coefficient between the two stocks? (Round your answer to 4 decimal places.)
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