A Company intends to establish a new Project named (A) beside its current project (E). The...

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A Company intends to establish a new Project named (A) beside its current project (E). The table below shows NPVs, E(NPV), and Standard Deviation of the Company's current project (E) and the new project (A) according to economic status. Calculate the Coefficient of Correlation between (E) and (A) p(EA) Economy Status NPV of Project (E) NPV of Project (A) Bust Normal Growth Boom E(NPV) Standard Deviation Pi 0.1 0.35 0.55 2,500 5,300 5,500 5,130 881.533 400 750 1,600 1,182.5 471.772 A Company intends to establish a new Project named (A) beside its current project (E). The table below shows NPVs, E(NPV), and Standard Deviation of the Company's current project (E) and the new project (A) according to economic status. Calculate the Coefficient of Correlation between (E) and (A) p(EA) Economy Status NPV of Project (E) NPV of Project (A) Bust Normal Growth Boom E(NPV) Standard Deviation Pi 0.1 0.35 0.55 2,500 5,300 5,500 5,130 881.533 400 750 1,600 1,182.5 471.772

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In order to calculate the coefficient of correlation between the net present value NPV of project E ... View the full answer