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Calculate covariance of the returns for two stocks

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Given the distributions of returns for the following two stocks, calculate the covariance of the returns for the two stocks. Assume the expected return is 10.8 percent for Stock 1 and 9.7 percent for Stock 2.

Prob Stock 1 Stock 2
0.4 0.09 0.11
0.5 0.11 0.08
0.1 0.17 0.13

Reference no: EM132525433

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