Question: 6. Using the data from Problem 5, assume the model is now an Industry Index Model where I(sub)1=I(sub)2 and that I(sub)2 is now an industry

6. Using the data from Problem 5, assume the model is now an Industry Index Model where I(sub)1=I(sub)2 and that I(sub)2 is now an industry index. Assuming that firms A and B are in the same industry, calculate the covariance of returns.

Problem 5 data:

6. Using the data from Problem 5, assume the model is

5 B3111 890 2002

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