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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Definitions:

Physical Communication

The use of body language, facial expressions, and other non-verbal cues to convey information or express emotions.

Associative Learning

The process by which an individual learns the connection between two stimuli or between a behavior and a consequence.

Operant Conditioning

A learning process through which the strength of a behavior is modified by reinforcement or punishment.

Communication

The act of conveying meanings from one entity or group to another through the use of mutually understood signs, symbols, and semiotic rules.