J.P. Morgan Asset Management publishes information about financial investments. Overthe past 10 years, the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was5.78% with a standard deviation of 2.13% (J.P. Morgan asset Management, guide to theMarkets, 1st quarter, 2012). The publication also reported that the correlation betweenthe S&P 500 and core bonds is −.32. You are considering portfolio investments that arecomposed of an S&P 500 index fund and a core bonds fund.a. Using the information provided, determine the covariance between the S&P 500 andcore bonds

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J.P. Morgan Asset Management publishes information about financial investments. Over
the past 10 years, the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was
5.78% with a standard deviation of 2.13% (J.P. Morgan asset Management, guide to the
Markets, 1st quarter, 2012). The publication also reported that the correlation between
the S&P 500 and core bonds is −.32. You are considering portfolio investments that are
composed of an S&P 500 index fund and a core bonds fund.
a. Using the information provided, determine the covariance between the S&P 500 and
core bonds

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