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Q6. Consider two random variables, W and Z, where Cov(W,Z) = 0.025, Var(W) = 0.3 and Var(Z) = 0.2 A. The covariance between W and Z is positive. Will the correlation necessarily be positive too? Explain. (3 points) B. What is the value of Var(2W 32)? (4- points) C. If Cov(W,Z) were to increase, what would happen to the value of Var(2W 32)? Provide an intuitive explanation. (3 points)

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