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problem: Given the returns and probabilities for the 3 possible states listed here, find out the covariance between the returns if Stock A & Stock B. for convenience, suppose that the expected returns of stock A & Stock B are 11.75% and 18% , respectively.

	Probability	Return(A)	Return(B)
Good	0.35	0.30	0.50
OK	0.50	0.10	0.10
Poor	0.15	-0.25	-0.30

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M917610

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