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QUESTION 5 Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 0.25 0.15 Growth 30% 0.15 -0.05 Normal 20% 0.12

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QUESTION 5 Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 0.25 0.15 Growth 30% 0.15 -0.05 Normal 20% 0.12 -0.06 Bust 30% -0.05 0.10 Calculate the covariance(A,B). (Enter percentages as decimals and round to 4 decimals)

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