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In your researches you discover that the covariance between the return achieved by company B over the last twenty years with the return on the
In your researches you discover that the covariance between the return achieved by company B over the last twenty years with the return on the market has been 0.04 and the covariance between the return achieved by company D with the return on the market over this period has been 0.2. Your client suggests that these results mean that it would be a good idea to invest in these two companies.
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