Question: Given Ra*= 0.053538 + 1.087019Rm* + eA. Rb*= -0.034806 + 1.049321Rm*+ eB. M = 0.90907380; (eA) = 0.10996320; (eB) = 0.49606320 Calculate the R of

Given

Ra*= 0.053538 + 1.087019Rm* + eA.

Rb*= -0.034806 + 1.049321Rm*+ eB.

M = 0.90907380; (eA) = 0.10996320; (eB) = 0.49606320

Calculate the R of stock B above (rounded to 4 decimal places).

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