Question: Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA=1.5x+0.55RN+eAf0=1.4x+e.6RM+eBM=18x;RsquareA=0.25;R-squareg=0.16

Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA=1.5x+0.55RN+eAf0=1.4x+e.6RM+eBM=18x;RsquareA=0.25;R-squareg=0.16

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