Find covariance between returns

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Reference no: EM131564132

Please use the following information to answer parts a-d below

Ra= 0.03+0.5Rm+ea

Rb=0.02+1.3Rm+eb

σm=0.2, σea= 16.04%, σeb= 8.67%

a) Find Covariance between returns on A, B

b) Standard Deviation between returns on A, B

c) R Sqaure for both (R^2A, R^B)

d) Correlation between market return on Portfolio that is 60% in A and 40% in B

Reference no: EM131564132

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