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Stock P and Stock Q have had annual returns of -10 percent, 12 percent, and 28 percent; and 8 percent, 13 percent, and 24 percent,
Stock P and Stock Q have had annual returns of -10 percent, 12 percent, and 28 percent; and 8 percent, 13 percent, and 24 percent, respectively. Calculate the covariance of return between the securities. (Ignore the correction for the loss of a degree of freedom set out in the text.)
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