Question: 7.37 The same article that claims that the correlation between changes in stock prices in Europe and the United States is 0.8 goes on to

7.37 The same article that claims that the correlation between changes in stock prices in Europe and the United States is 0.8 goes on to say: "Crudely, that means that movements on Wall Street can explain 80% of price movements in Europe."

(a) Is this true? Circle your answer: Yes No

(b) What is the correct percent explained if r = 0.8?

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