Question
Listed below is the return probability distribution associated with the stocks of XYZ Company and the market portfolio under different states of the economy:
Listed below is the return probability distribution associated with the stocks of XYZ Company and the market portfolio under different states of the economy: State Recession Normal Boom Probability 0.4 0.3 0.3 XYZ Return -3% 14% 20% What is the covariance between XYZ return and Market return? Market Return 2% 8% 16%
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
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