Consider the following information State of economy Probability of state Return of Stock A Return of Stock B Good 0 2 38 13 8 Normal 0 5 16 8 18 8 Poor 0 3 47 8 9 2 What is the correlation between the returns of the two stocks Report your answer as a percentage with 2 digit precision (ex show 12 34...

To calculate the correlation between the two stocks we n ...

Consider the following information: State of economy Probability of state Return of Stock A Return of Stock

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Consider the following information:

State of economy	Probability of state	Return of Stock A	Return of Stock B
Good	0.2	38%	13.8%
Normal	0.5	16.8%	18.8%
Poor	0.3	-47.8%	9.2%

What is the correlation between the returns of the two stocks? Report your answer as a percentage with 2-digit precision (ex. show 12.3456% as 12.35).

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Contemporary Auditing

ISBN: 978-1285066608

8th edition

Authors: Michael C. Knapp

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Posted Date: Nov 21, 2022 01:13 AM

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Consider the following information: State of economy Probability of state Return of Stock A Return of Stock

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Contemporary Auditing

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