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Question 2 The beta of MSFT is 1 . 1 1 4 6 2 . The beta of TSLA is 1 . 8 1 1

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2

The beta of MSFT is

1.11462 .

The beta of TSLA is

1.81137 .

The variance of the returns of the Market is

0.00253 .

Compute the covariance between MSFT and TSLA.

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