Given the Returns for Two Stocks with the Following Information

question 50

Multiple Choice

Given the returns for two stocks with the following information, calculate the correlation coefficient of the returns for the two stocks. Assume the expected return for Stock 1 is 10.8 percent and 9.7 percent for Stock 2.
Prob
Stock 1
Stock 2
0) 4
0) 09
0) 11
0) 5
0) 11
0) 08
0) 1
0) 17
0) 13

• A) 0.230967
• B) -0.00002548
• C) 0.00032100
• D) 0.17671455

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The fraction or percentage of the sample that exhibits a particular property or attribute.

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