Answer Happy

Financial analysts have estimated the returns on shares of theGoldday Corporation and the overall market portfolio under twoeconomic states nature as follows. For Goldday the state-dependentreturns are -0.06 in recession, and 0.10 in an economic boom. Forthe market, the state-dependent returns are -0.06 in recession, and0.14 in the boom. The analyst estimates that the probability of arecession is 0.50 while the probability of an economic boom is0.50.
Compute the covariance between Goldday and the market.
* State your answer in decimal form, working your analysis usingat least four decimal places of accuracy.