Your question is Covariance and Correlation for Committees. Take a moment with it on the right.
Talk me through your thinking if you like. When you're confident, submit your answer and I'll grade it like a real screen (7/10 or better passes).
How do you define and calculate the covariance and correlation between two asset classes, and what do these metrics tell an investment committee? Explain the calculation using the supplied return observations, distinguish sample from population covariance, and interpret the results for diversification and portfolio construction. State key assumptions and limitations, including whether correlation implies causation and whether historical dependence is stable.