Question: Suppose there are two stocks 1 and 2. The expected return of stock 1 is 0.6, and the expected return of stock 2 is 0.5.

Suppose there are two stocks 1 and 2. The expected return of stock 1 is 0.6, and the expected return of stock 2 is 0.5. The standard deviation of stock 1 is 0.6, and the standard deviation of stock 2 is 0.3. The covariance between stock 1 and stock 2 is 0.05.

Suppose there are two portfolios, P and Q. Their portfolio weights are in the table below:

Portfolio i	wi,1	wi,2
P	0.2	0.8
Q	-0.5	1.5

Here wi,1wi,1 represents the portfolio weight in Stock 1, and wi,2wi,2 represents the portfolio weight in Stock 2.

What is the covariance between Portfolio P and Portfolio Q returns? Round your final answer to 3 decimal places.

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