Question $1$: Lee purchased a stock one year ago for $$26.$ The stock is now worth $$34,$ and he

total return to Lee for owning the stock was $0\mathrm{.}38.$ What is the dollar amount of

dividends that he received for owning the stock during the year? Round to two

decimal places

Question $2$: 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 $0\mathrm{.}10$ and $0\mathrm{.}15,$ respectively.

$($Round your answer to $4$ decimal places. For example $\mathrm{.}1244)$

Probability

Return$($A$)$ Return$($B$)$

Good

$0\mathrm{.}35$

$0\mathrm{.}30$

$0\mathrm{.}50$

OK

$0\mathrm{.}50$

$0\mathrm{.}10$

$0\mathrm{.}10$

Poor

$0\mathrm{.}15$

$-0\mathrm{.}25$

$-0\mathrm{.}30$