Question: Problem 8-11 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA - 2.8% +

Problem 8-11 Suppose that the index model for stocks A and

Problem 8-11 Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA - 2.8% + 1.00RM + A RB - -1.0% 1.30 RM + @B OM - 188; R-squareA - 0.27; R-squares = 0.13 What are the covariance and correlation coefficient between the two stocks? (Do not round intermediate calculations. Calculate using numbers in decimal form, not percentages. Round your answers to 4 decimal places.) Covariance Correlation coefficient

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