Please show work and provide the formulas if necessary.

What is the covariance between stocks A and B based on the historical information presented in the table above? a. 0.005467 b. 0.00832 c. 0.0082 d. 0.0164 Answer the next 2 questions based on the following Variance-Covariance Matrix: 7. Which two stocks would result in a greatest potential benefit of diversification if combined in a portfolio: a. A&B b. A&C c. B&C d. A&A e. B&B f. C \& C 7. Which two stocks would result in a greatest potential benefit of diversification if combined in a portfolio: a. A&B b. A&C c. B&C d. A&A e. B&B f. C&C 8. What is the correlation coefficient between stocks A and B: a. 0.00022 b. 0.00125 c. 0.0025 d. 0.01075 e. 0.2988