Question: Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of stock A and stock B. for
Given the returns and probabilities for the three possible states listed here, 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 0.13 and 0.18, respectively (round your answer ton4 decimal places)
probability Return A. Return B
good. 0.35. 0.30. 0.50
ok. 0.50. 0.10. 0.10
poor. 0.15. - 0.25. -0.30
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