Question: Calculate the correlation coefficient ( AB ) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 0.2921.) State

Calculate the correlation coefficient (_AB) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 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	25%	46.0%	63.0%
Moderate	20%	25.0%	33.0%
Recession	55%	-13.0%	-23.0%

Correlation coefficient

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