Question: Problem 3: Correlation, covariance, beta: Just stare at the formulas! Consider asset A traded in market M. Suppose Can you find the correlation coefficient between

Problem 3: Correlation, covariance, beta: Just stare at the formulas!

Consider asset A traded in market M. Suppose Can you find the correlation coefficient between the return on A and the market return? If yes, show your work. If no, explain why not. (Hint: write down the relevant formulas, stare at them for a moment, then deduce how to compute

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