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Given the returns and probabilities for the three possible states listed below, calculate the covariance between...

Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 10.00 percent and 16.00 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Probability Return on Stock A Return on Stock B Good 0.35 0.30 0.50 OK 0.45 0.10 0.10 Poor 0.20 -0.25 -0.30 Covariance

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jeff jeffy answered 1 year ago
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