Question: Question 6. (10 points) The following are estimates for two stocks as a result of regression of each stock onto the stock market index.

Question 6. (10 points) The following are estimates for two stocks as

Question 6. (10 points) The following are estimates for two stocks as a result of regression of each stock onto the stock market index. Stock A 11 B Residual Error, or risk % Expected Return % Beta 1.3 21 9 0.7 16 The stock market index has a standard deviation of 18%. Calculate the standard deviation for each stock. Calculate the covariance between stocks A, and B.

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