Chrome File Edit View History Bookmarks People Window Help 12%Mon 1 Oct 8:08 pm a E Grades WeBWorK : 201 8.8.MTH458 + C Not Secure Hassard/probability covariance/1/?user-shreybaf&effectiveUsershreybafakey. ww2.math.buffalo.edu/ebwor (1 point) From values of the Standard and Poors 500 index and of General Electric stock at closing on the listed dates, the annual return rates 2/201 8 8 MTH458 Problems were as follows: period rSP rGE Problem 1.. Problem 2 Problem 3 06/15/13- 06/15/14 0.1902 0.1497 06/15/14 06/15/15 0.0766 0.0063 06/15/15-06/15/16-0.0062 0.1242 Here is the same data as text: sp: 0.1902,0.0766,-0.0062 rGE: 0.1497,0.0063,0.1242 The average return rates for the SP500 and GE data are (1) sP0.0869 12) TGE0.0934 Then 3 S.2002 spsp) (4) 21(ra-rie)2= 0.01 17 rGE)= 0.0040 We wish to use the sample data to estimate the variances . .2E , and the covariance GESP Using the "unbiased" formulas that divide (3), (4) and (5) by N-1-2, we find