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The return on stock A is .06 if the economy is good and it is also .06 if the economy is bad. The return on
The return on stock A is .06 if the economy is good and it is also .06 if the economy is bad. The return on stock B is .08 if the economy is good and.04 if it is bad. The probability of a good economy is 50% and the probability of a bad economy is also 50%. Find the covariance of the return on stock A with the return on stock B. .0009.00140.0017
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