Question: You are given the following return probability distribution for Stock X and Y: Bear market Normal market Bull market Probability 0.2 0.5 0.3 Stock X

You are given the following return probability distribution for Stock X

You are given the following return probability distribution for Stock X and Y: Bear market Normal market Bull market Probability 0.2 0.5 0.3 Stock X -5% 10% 20% Stock Y -5% 20% 10% What is the return correlation between Stock X and Y? 0.6225 0.5447 0.4193 0.2071

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