Based on the following stock return information for Johnson & Johnson and Walt Disney (see table), the correlation between the returns of the two stocks is: a. 0.9647   b. 0.0807   c. 0.0015   d. 0.0003   e. 0.0187

Quickbooks Online Accounting
3rd Edition
ISBN:9780357391693
Author:Owen
Publisher:Owen
Chapter5: Operating Activities: Purchases And Cash Payments
Section: Chapter Questions
Problem 1.1C
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Based on the following stock return information for Johnson & Johnson and Walt Disney (see table), the correlation between the returns of the two stocks is:

a. 0.9647
 
b. 0.0807
 
c. 0.0015
 
d. 0.0003
 
e. 0.0187
Probability of
State of
Return on
Return on
State of
Johnson & Walt Disney
Co.
.041
Economy
Economy
.23
Johnson
Sick
-.013
.145
.225
Normal
.58
.069
Healthy
.19
.099
Transcribed Image Text:Probability of State of Return on Return on State of Johnson & Walt Disney Co. .041 Economy Economy .23 Johnson Sick -.013 .145 .225 Normal .58 .069 Healthy .19 .099
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