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Questions 1-10 are designed to review some statistical concepts as well as to help you understand the benefits from diversification. Assume that there are two

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Questions 1-10 are designed to review some statistical concepts as well as to help you understand the benefits from diversification. Assume that there are two assets (A and B ) and there are four possible future scenarios. The four scenarios and their probabilities are shown in the following table. The last two columns show the returns on assets A and B in the four possible scenarios. What is the covariance between two asset returns? \begin{tabular}{l} \hline 0.00168 \\ \hline-0.00168 \\ \hline 0.00276 \\ \hline-0.00276 \end{tabular}

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