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| Returns A \ Returns B | R_B = 50% | R_B = 20% | R_B = -30% |
|---|---|---|---|
| R_A = -10% | 40% | 0% | 0% |
| R_A = 10% | 0% | 30% | 0% |
| R_A = 30% | 0% | 0% | 30% |
Given the probability matrix above, the covariance between Stock A and B is closest to?
A
-0.160
B
-0.055
C
0.004
D
0.020