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Please walk me through the step: according to the memo, the answer is B but I find it dubious You have been provided with the

Please walk me through the step: according to the memo, the answer is B but I find it dubious

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You have been provided with the below information related to potential returns on bonds and shares under different economic conditions. Scenario Probability Return.0n.Shares Return.0n.Bonds Boom 6% 44% 9% Positive Growth 17% 17% 6% Normal Growth 43% 4% 4% Negative Growth 20% 2% 1% Recession 10% 8% 0% Crash 4% 17% 2% Question 3 Calculate the covariance between shares and bonds. A) 0.0023 B) 0.0029 G) 0.0027 D) 0.0031 E) 0 .0029

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