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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. For
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 0.12and0.15, respectively. (Round your answer to 4 decimal places. For example .1244)
Probablity return A Return B
Good .35 .30 .50
ok.50 .10.10
poor .15-.25 -.30
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