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Question 6 Using the following ex-ante data on returns of stock A and B, find the covariance of returns and the beta of returns A

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Question 6 Using the following ex-ante data on returns of stock A and B, find the covariance of returns and the beta of returns A and B. State of Economy Boom Normal Recession Prob 0.2 0.5 0.3 Stock A 0.3 0.2 0.1 Stock B 0.06 -0.05 0.12 Market Return 0.25 0.15 -0.08

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