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Calculate the covariance of the returns for the two stocks

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Reference no: EM132517652

Question 1: Given the returns for two stocks with the following information, calculate the covariance of the returns for the two stocks.

Probability   Return Stock1  Return Stock2

0.4                   11%.              12%

0.5                   12%                  10%

0.1                  15%                    14%

Reference no: EM132517652

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