Consider the Following Probability Distribution for Stocks a and B

question 29

Multiple Choice

Consider the following probability distribution for stocks A and B: $$\begin{array} { c c c c } \text { State } & \text { Probability } & \text { Return on Stock A } & \text { Return on Stock B } \\1 & 0.10 & 10 \% & 8 \% \\2 & 0.20 & 13 \% & 7 \% \\3 & 0.20 & 12 \% & 6 \% \\4 & 0.30 & 14 \% & 9 \% \\5&0.20 & 15 \% & 8 \%\end{array}$$
The coefficient of correlation between A and B is

• A) 0.47.
• B) 0.60.
• C) 0.58
• D) 1.20.
• E) none of these.

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Definitions:

Manifest Content

In psychoanalytic theory, the surface level of dreams, containing the dream images and events as remembered by the dreamer.

Sleep Deprivation

A condition resulting from not getting enough sleep, which can affect physical and mental health.

ADHD

Attention-Deficit/Hyperactivity Disorder, a neurodevelopmental disorder marked by an ongoing pattern of inattention and/or hyperactivity-impulsivity that interferes with functioning or development.

Depression-Like Symptoms

Manifestations similar to those of clinical depression, including persistent sadness, lack of energy, and loss of interest in activities.