Rush corporation in the state of recession is estimated

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The return on the Rush Corporation in the state of recession is estimated to be -21% and the return on Rush in the state of boom is estimated to be 31%. The return on the Oberman Corporation in the state of recession is estimated to be 41% and the return on Oberman in the state of boom is estimated to be -19%. Given this information, what is the covariance between Rush and Oberman if there is a 0.60 probability that the economy will be in the state of boom and a 0.40 probability that the economy will be in the state of recession.

Reference no: EM131617127

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