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A company has invested $ 9 0 0 , 0 0 0 in a diversified portfolio and is considering investing $ 1 0 0 ,
A company has invested $ in a diversified portfolio and is considering investing $ in a riskfree government bond with a monthly yield. The financial director of the company presents the following information:
Expected Monthly Returns Standard Deviation of Monthly Returns
Initial portfolio
Government bond
Calculate the covariance of the government bond returns with the original portfolio returns
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