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The return on the Agnes Corporation in the state of recession is estimated to be -24 % and the return on Agnes in the state
The return on the Agnes Corporation in the state of recession is estimated to be -24% and the return on Agnes in the state of boom is estimated to be 33%. The return on the Cameron Corporation in the state of recession is estimated to be 40% and the return on Cameron in the state of boom is estimated to be -19%. Given this information, what is the covariance between Agnes and Cameron if there is a 0.45 probability that the economy will be in the state of boom and a 0.55 probability that the economy will be in the state of recession.
A | 0.0570 | |
B | -0.0849 | |
C | 0.4163 | |
D | 0.0755 | |
E | -0.0832 |
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