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Rate of Return Probability of the state of Economy Stock A Stock B Bull 0.3 13% 4% Bear 0.2 -10% 12% Neutral 0.5 5% 5%

Rate of Return
Probability of the state of Economy Stock A Stock B
Bull 0.3 13% 4%
Bear 0.2 -10% 12%
Neutral 0.5 5% 5%

Given the above table compute the covariance between returns of stock A and Stock B

0.00227

-0.00227

-0.0227

0.227

0.0227

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