Return on the rush corporation in the state of recession

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The return on the Rush Corporation in the state of recession is estimated to be -23% and the return on Rush in the state of boom is estimated to be 34%. The return on the Oberman Corporation in the state of recession is estimated to be 40% and the return on Oberman in the state of boom is estimated to be -20%. Given this information, what is the covariance between Rush and Oberman if there is a 0.40probability that the economy will be in the state of boom and a 0.60probability that the economy will be in the state of recession.

Reference no: EM13971855

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