Question: This table summarizes several statistics for 36 monthly returns for American Electric Power (ticker AEP) and Microsoft (MSFT) over a three-year period. Obs (1) AEP

This table summarizes several statistics for 36 monthly returns for American Electric Power (ticker AEP) and Microsoft (MSFT) over a three-year period. Obs (1) AEP It -0.0123 0.0155 0.0807 (2) MSFT It -0.0034 0.0851 0.0639 (5) (6) MSFT MSFT (r: - 77 (r: -r)? (r: - F)? -0.0159 0.000580 0.000252 0.0726 0.000014 0.005274 0.0514 0.004751 0.002643 AEP (r: -7) -0.0241 0.0038 0.0689 1 2 Product 0.000382 0.000274 0.003544 3 . . 33 35 36 SUM -0.0181 0.0158 -0.0083 0.4233 -0.0448 -0.0361 -0.0062 0.4488 -0.0298 0.0040 -0.0201 0 -0.0572 0.000889 -0.0485 0.000016 -0.0187 0.000402 0 0.053689 0.003274 0.001706 0.002357 -0.000195 0.000350 0.000375 0.111084 -0.006329 Column 1 is the monthly return for AEP and Column 2 is the monthly return for MSFT Column 3 is the difference between the monthly return for AEP and the average return for AEP. Column 4 is the same for MSFT. Column 5 is Column 3 squared and Column 6 is Column 4 squared. Column 7 is the product of Column 3 and Column 4. The bottom row contains the sum of each column. Several rows are not displayed to save space. What is the correlation between the monthly returns of AEP and MSFT? O A-0.082 O B. -0.102 O C.-0.122 D.-0.124
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
