Compute the correlation between earnings yield

$($

E

$/$

P and E

$1$

$0$

$/$

P

$)$

$$and

$1$

$0$

$-$

year Treasury note yield

$($

Y

$1$

$0$

$)$

$.$

$$Treasury note yield

$($

Y

$1$

$0$

$)$

$$for the full sample, subsamples from

$1$

$8$

$7$

$1$

$-$

$1$

$9$

$2$

$6$

$,$

$1$

$9$

$2$

$7$

$-$

$1$

$9$

$2$

$2$

$,$

$1$

$9$

$5$

$0$

$-$

$2$

$0$

$2$

$2$

$,$

$$respectively$.$ Discuss the results you find. Does the Treasury note yield positively or negatively correlated with earnings yield? How do we understand the relation?

Table

$2$

$$Correlations

$($

with

$3$

$-$

digit precision

$)$

Corr.

$($

sample period

$)$

$$E

$/$

P E

$1$

$0$

$/$

P Y

$1$

$0$

E

$1$

$0$

$/$

P

Y

$1$

$0$