1. London purchased a piece of real estate last year for $84,300. The real estate is now worth $105,000. If London needs to have a total return of 0.22 during the year, then what is the dollar amount of income that she needed to have to reach her objective?

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 0.13 and 0.16, respectively. (Round your answer to 4 decimal places. For example .1244)

	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