Question: Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks. Probability Return Stock1 Return Stock2

Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks.

Probability Return Stock1 Return Stock2

0.4 11%. 12%

0.5 12% 10%

0.1 15% 14%

Covariance

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