Question: Investment advisors now often report correlations. For example, the correlation between gains and losses in large cap stocks and gains and losses in municipal bonds

Investment advisors now often report correlations. For example, the correlation between gains and losses in large cap stocks and gains and losses in municipal bonds isr= 0.45. This means that the percent of changes in municipal bond performance that can be explained by the straight line relationship between municipal bonds and large cap stocks is approximately

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