Suppose two asset returns are described by a two factor model, r1 = 0% + 1f1 + 1.872 + el 12 = -1% + 2f1 + 0.572 + e2 where the volatility of first factor is 30%, the volatility of the second factor is 10%, and the correlation between the two factors is 0.5. Suppose also that the volatilities of the error terms ej and e2 are both 10%. What is the covariance of r1 and 12 ? (Nearest 0.0001)