Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 1. what is the correlation coefficient between the

1. What is the correlation coefficient between the two stocks? 2. What is the correlation...

70.2K

Verified Solution

Question

Finance

image

1. What is the correlation coefficient between the two stocks?

2. What is the correlation coefficient between stock B and the market index?

Use the following data for Question#9 and Question#10. RA = 3% +0.7RM + CA R-square = 0.20 Firm-specific standard deviation (ex) = 28% Firm-specific standard deviation oeb) = 64.99% RB = -2% +1.2RM + eB R-square = 0.12 OM = 20% What is the correlation coefficient between the two stocks? Your answer should be in decimal values and accurate to the hundredth (NOT in percentage points). Use the following data for Question#9 and Question#10. RA = 3% +0.7RM + CA R-square = 0.20 Firm-specific standard deviation (ex) = 28% Firm-specific standard deviation oeb) = 64.99% RB = -2% +1.2RM + eB R-square = 0.12 OM = 20% What is the correlation coefficient between the two stocks? Your answer should be in decimal values and accurate to the hundredth (NOT in percentage points)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

Ratio Analysis The comparative statements of financial position of IKEA Furniture Outlay Retail Shop in Sydney for the...

Chemistry
1.2K views

What is the relationship between % transmittance and concentration?

Physics
1.2K views

A 5 Kg slider moves along a smooth straight rod in a vertical plane Attached...

Geometry
1.2K views

Q st nd mids and 000 Question 9 Find the perimeter of the trapezoid shown...

Basic Math
1.2K views

The radius of the base of a cylinder is decreasing at a rate of 12...

Statistics
1.2K views

There are 12 members on a city council At a recent city council meeting 4...

Calculus
1.2K views

Let f (x) = -5.#1) Evaluate f(4).f(4)=#2) Solve x for f(x) = -1.

Calculus
1.2K views

Determine all the values of 0 in the following equation if 0 0 2 12sin...

Accounting
1.2K views

What is the capital charge factor for a loan with an interst rate of 7%...

Accounting
1.2K views

On September 17 2013 Z a component of the lentity according to generally accepted accounting...

Accounting
1.2K views

6. You just graduated from LSUS. Recruiters are eager to hire you. You have two...

Accounting
1.2K views

how is the income before income tax expense calculated? Sellall Department Stores...