Question: Calculating the correlation coefficient An analyst obtains 22 annual return observations for Stock 1 and Stock 2. The analyst finds that the sum of the

Calculating the correlation coefficient An analyst obtains 22 annual return observations

Calculating the correlation coefficient An analyst obtains 22 annual return observations for Stock 1 and Stock 2. The analyst finds that the sum of the squared deviations from the mean for Stock 1 and Stock 2 are 2.3289 and 2.8982 respectively. The sum of the product of the deviations from the mean for Stock 1 and Stock 2 is 2.1648. The correlation coefficient between the stocks is Multiple Choice o 0.87 O 0.79 O 0.83 O 0.75

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