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Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks. Probability Return Stock 1 Return

Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks.

Probability Return Stock 1 Return Stock 2
E(R) 1
0.4 9% 11% E(R) 2
0.5 11% 8% Cov(R1,R2)
0.1 17% 13%

What is

Covariance

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