I have seriously read over every single comment on this thread, and still can't get the answer. I'm stuck on A.2. I got rho as (1/2)(1+.25) = .625. As far as the Gamma coefficient at the front is... I have no idea. I haven't had a stats class in almost 2 years, and I don't see one single example in this or the last chapter that demonstrates how to use coefficients in the covariance term, or whether I'm supposed to use Gamma 0 or Gamma k, or what the difference is. Can someone spell it out for me instead of giving hints that are already given in the book? I need a step by step process that I can extrapolate to other problems.
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