Question: Consider the two ( excess return ) index model regression results for A and B . R A = - 1 . 4 % 1

Consider the two (excess return) index model regression results for A and B.
RA=-1.4%1.4RM
R-square =0.664
Residual standard deviation =13.4%
RB=0.9%0.85RM
R-square =0.598
Residual standard deviation =12%
Consider the two ( excess return ) index model

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