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Consider the following information on stocks A and B: State of The Economy Probability of Each State Stock A Rate of Return Stock B Rate

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Consider the following information on stocks A and B: State of The Economy Probability of Each State Stock A Rate of Return Stock B Rate of Return Recession 0.10 -0.20 0.14 Normal 10.60 0.10 0.24 Boom 10.30 0.42 0.28 The raw value of the covariance between A and B's returns is: A. 0.016186 B. 161.86 O C. 67.08 OD. 0.006708

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