Question: What is closest to the correlation coef. between these two? (Hint: Use Excel's correl function) This information is for the next four problems. (MDY approximates

 What is closest to the correlation coef. between these two? (Hint:

What is closest to the correlation coef. between these two? (Hint: Use Excel's "correl" function)

Use Excel's "correl" function) This information is for the next four problems.

(MDY approximates a broad market index of mid-cap stocks). Consider these historical

This information is for the next four problems. (MDY approximates a broad market index of mid-cap stocks). Consider these historical annual returns for the MDY, mid-cap ETF and DHI, a mid-cap homebuilding company. What is closest to the correlation coef. between these two? (Hint: Use Excel's "correl" function). Assume that MDY represents the market of mid-cap stocks and you are a mid-cap-stock-only investor. Which is closest to DHI's beta? (Hint: use your answer to the previous question with this formula: BtoA=AB(B/A) E) 0.75 D) 0.85 B) 0.00 C) 1.00 A) 0.50

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