Given the following probability distribution, find the covariance of the expected returns for stocks A and B. Event P(Ri) RA RB Recession 0.10 -5% 4 Below Average 0.30 -2% 8 Normal 0.50 10% 10 Boom 0.10 31% 12 A) 0.00109. B) 0.00174. C) 0.00032. D) 0.00213

B?

I got B

Use the “tree” method and things will be much easier