Question
In: Finance
What is the correlation between stocks X and Z? State of the Economy Probability of Occurrence...
What is the correlation between stocks X and Z?
|
State of the Economy |
Probability of Occurrence |
Stock X Expected Return |
Stock Y Expected Return |
Stock Z Expected Return |
|
Recession |
35% |
25% |
-10% |
15% |
|
Average |
45% |
14% |
8% |
25% |
|
Boom |
20% |
4% |
14% |
-10% |
|
0.96 |
|
0.51 |
|
-0.26 |
|
0.26 |
Solutions
Expert Solution
| Coefficient of Correlation = | 50.93/(7.68*13.03) | ||
| 0.51 | |||
| Option B is correct |
jeff jeffy answered 2 years agoRelated Solutions
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0.20
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0.55
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0.25
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stock C
0.38.
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