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RA 3% + 1.3 RM + eA RB -2% + 1.2 RM + eB Market SD 25% R-SquareA 20% R-SquareB 12% Calculate the Covariance between

RA	3%	+	1.3	RM	+	eA
RB	-2%	+	1.2	RM	+	eB

Market SD	25%

R-SquareA	20%
R-SquareB	12%

Calculate the Covariance between Stock A and Stock B?

		0.0782
		0.0846
		0.0921
		0.0975

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