Question $25$

What is the correlation between Stock $1$ and Stock $2\text{'}$s returns?

Expected Return

Probability Stock $1$ Stock $2$

Good Economy

$0\mathrm{.}25$

$-0\mathrm{.}20$

$-0\mathrm{.}10$

Normal Economy

$0\mathrm{.}50$

$0\mathrm{.}15$

$0\mathrm{.}00$

Bad Economy

$0\mathrm{.}25$

$0\mathrm{.}50$

$0\mathrm{.}40$

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