Question: State of Nature Probability State Dependent Return A State Dependent Return B -.08 Recession Expansion 70% 30% -.04 .16 .28 Using the data in the

State of Nature Probability State Dependent Return A State Dependent Return

State of Nature Probability State Dependent Return A State Dependent Return B -.08 Recession Expansion 70% 30% -.04 .16 .28 Using the data in the table above, which of the following comes closest to the covariance between Stock A and Stock B? O A. The covariance between Stock A and Stock B = -0.0117 B. -The covariance between Stock A and Stock B = 0.0028 O C. The covariance between Stock A and Stock B = 0.0000 D. The covariance between Stock A and Stock B = 0.1170 O E. The covariance between Stock A and Stock B = 0.0151

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