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The covariance between the two stock returns is                         .

Question

The covariance between the two stock returns is                         .

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Solution

To answer this question, we first need to know the specific stock returns you're referring to. However, I can explain how to calculate the covariance between two stock returns.

  1. Gather the data: You need the historical return data for both stocks. This data can usually be found on financial websites.

  2. Calculate the mean return for each stock: Add up all the returns for each stock and then divide by the number of returns.

  3. Subtract the mean from each individual return: This gives you the deviation from the mean for each return.

  4. Multiply the deviations: For each time

This problem has been solved

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