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Given the returns and probabilities for the three possible states listed here , calculate the covariance between the returns of Stock A and Stock B.
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 0.18 , respectively. Round your answer to 4 decimal places.
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
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