INV2 P3c Suppose that the index model for two Canadian stocks HD and ML is estimated with the following results: R HD =0.02+0.80R M +e HD R-squared =0.6 R ML = XXXXXXXXXX50R M +e ML R-squared =0.4 σ M...

INV2 P3c

Suppose that the index model for two Canadian stocks HD and ML is estimated with the following results:

R_HD
=0.02+0.80R_M+e_HD

R-squared =0.6

                R_ML
=-0.03+1.50R_M+e_ML

R-squared =0.4

σ_M
=0.20

where M is S&P/TSX Comp Index and R_X
is the excess return of stock X.

What is the covariance and the correlation coefficient between HD and ML?