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You are looking at stocks A and B. You know that they have betas of 1.4 and 1.3, respectively. You know that their individual standard deviations are 10% and 19%, respectively and that the market return has a standard deviation of 9%. What is the correlation between these stocks' returns?
You are looking at stocks A and B. You know that they have betas of 1.4 and 1.3, respectively. You know that their individual standard deviations are 10% and 19%, respectively and that the market return has a standard deviation of 9%. What is the correlation between these stocks' returns?
Expert Answer
ANS WER The correlation between the two stocks ' returns is 0 . 65 . WORK ING We can use the formula
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Related Book For 
Physics for Scientists and Engineers A Strategic Approach with Modern Physics
4th edition
Authors: Randall D. Knight
ISBN: 978-0133942651
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