Consider the Following Probability Distribution for Stocks a and B

question 70

Multiple Choice

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

• A) 0.46.
• B) 0.60.
• C) 0.58.
• D) 1.20.

---

Definitions:

Criminal Act

An action that violates the laws of a jurisdiction and is punishable by the state.

Bribery

The offering, giving, receiving, or soliciting of something of value as a means of influencing the actions of an individual holding a public or legal duty.

Building Contract

A legal agreement between a property owner and a contractor for the construction of a building, specifying terms, conditions, and scope of work.

Ontario

A province in Canada known for its natural beauty, including lakes and forests, and as the home of Canada's largest city, Toronto.