Calculate the correlation coefficient (PAB) for the following situation: (Round intermediate calculations and the final...
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Finance
Calculate the correlation coefficient (PAB) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, eg. 0.2921) State of the economy Probability of occurrence Expected return on stock A in this state Expected return on stock B in this state High growth 30% 38.5% 55.5% Moderate 25% 17.5% 25.5% Recession 45% -5.5% -15.5% Correlation coefficient
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