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5. Following table shows the return per $1,000 for two types of investments. P(A.B) Investment A Investment B 0,2 600 250 0.7 400 200 0.1

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5. Following table shows the return per $1,000 for two types of investments. P(A.B) Investment A Investment B 0,2 600 250 0.7 400 200 0.1 100 300 Suppose 40 % of the portfolio (P) is in Investment A and 60% is in Investment B. Calculate the portfolio return and covariance between investment A and investment B. (25 points)

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