Question: Consider the following historical data for the returns on assets A and B and the market portfolio: Period Asset A Asset B Market Portfolio 1

Consider the following historical data for the returns on assets A and B and the market portfolio:

Period Asset A Asset B Market Portfolio

1 10% 6% 4%

2 3% 6% 1%

3 5% 2% 5%

4 2% 4% 2%

5 1% 2% 1%

What is the covariance between asset A and asset B?

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