The following tables present returns on various pairs of stocks in several periods. In part A, we show you a scatter diagram of the returns on the first pair of stocks. Draw (or prepare in Excel) similar scatter diagrams for cases B through E. Match up the diagrams (A–E) to the following list of correlation coefficients by choosing the correlation that best describes the relationship between the returns on the two stocks: ρ = 1, 0, 0.2, 0.5, 1.0.

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A. B. % Return Stock 1 5 514 23 4 % Return Stock 1 1 2 GA WN 3 4 Stock 2 1 1 3 5 3 5 Stock 2 1 2 2345 Stock 2 6 5 4 ил m N - 0 0 1 Scatter diagram A 2 3 Stock 1 4 5 01 6