An Investor Is Considering Purchasing an Auto Stock (A) and a Gold

question 61

Essay

An investor is considering purchasing an auto stock (A) and a gold stock (B).If the auto stock is purchased, it is expected that it will provide an -8%, 5% and 18% potential returns during recessionary, normal or boom economies.If a gold stock is purchased, it is expected that it will provide 20%, 3% or -20% returns during the three economic states.All economic states have equal chance of occurring.Based on the above information, determine the correlation between the two stocks.

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Definitions:

Personal Computers

Electronic devices designed for individual use, capable of running applications and accessing the internet, among other functions.

Smartphones

Advanced mobile phones that offer internet access, apps, and multimedia capabilities beyond traditional cellular features.

How-To Advice

Practical guidance or instructions on how to perform tasks, solve problems, or accomplish specific objectives.

Attracting New Customers

The process of drawing in new clients or consumers to purchase products or services.