Question: Let R, and Rg be random variables representing the annual returns for Stock A and Stock B. You are given the following information: 04 =

Let R, and Rg be random variables representing the annual returns

Let R, and Rg be random variables representing the annual returns for Stock A and Stock B. You are given the following information: 04 = 0.33, 0g = 0.22, E[R,?] =0.1258, E[R,?] =0.0709 , E[R - Rg] =0.0377 Find PAs, the correlation between the returns of the two stocks. 0.2331 0.1805 0.1980 0.2156 0.2507

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