Question: Calculate the correlation coefficient ( AB ) for the following situation: State of the economy High growth Moderate Recession Probability of occurrence 25% 450/0 Expected

State of the economy High growth Moderate Recession Probability of occurrence 25%

Calculate the correlation coefficient (_AB) for the following situation:

State of the economy High growth Moderate Recession Probability of occurrence 25% 450/0 Expected return on stock A in this state 42.5% 21.5% -9.5% Expected return on stock B in this state 59.5% 29.5% -19.5%

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