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K The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select these two stocks since the linear correlation coefficient for Annual Rates of Returns Year Stock A Stock B Stock C Stock D 1 0.108 0.030 -0.565 -0.142 Stock E -0.117 Stock F -0.15 D 2 0.126 1.467 0.054 0.549 0.645 0.517 3 0.163 0.204 0.149 0.172 0.246 0.147 4 -0.093 -0.071 0.371 0.069 0.082 0.065 5 -0.036 0.016 -0.303 -0.108 -0.085 -0.116 6 -0.080 -0.141 0.584 0.121 0.199 0.095 7 0.096 0.097 0.100 0.098 0.157 0.078 8 -0.021 -0.050 -0.052 -0.041 -0.036 -0.043 9 0.083 0.162 -0.013 0.077 0.16 0.049 10 11 11 0.094 0.088 -0.213 -0.01 0.055 -0.032 0.326 0.246 -0.372 0.067 0.155 0.038 -

K The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select these two stocks since the linear correlation coefficient for Annual Rates of Returns Year Stock A Stock B Stock C Stock D 1 0.108 0.030 -0.565 -0.142 Stock E -0.117 Stock F -0.15 D 2 0.126 1.467 0.054 0.549 0.645 0.517 3 0.163 0.204 0.149 0.172 0.246 0.147 4 -0.093 -0.071 0.371 0.069 0.082 0.065 5 -0.036 0.016 -0.303 -0.108 -0.085 -0.116 6 -0.080 -0.141 0.584 0.121 0.199 0.095 7 0.096 0.097 0.100 0.098 0.157 0.078 8 -0.021 -0.050 -0.052 -0.041 -0.036 -0.043 9 0.083 0.162 -0.013 0.077 0.16 0.049 10 11 11 0.094 0.088 -0.213 -0.01 0.055 -0.032 0.326 0.246 -0.372 0.067 0.155 0.038 -

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section: Chapter Questions
Problem 10PFA
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K The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select these two stocks since the linear correlation coefficient for Annual Rates of Returns Year Stock A Stock B Stock C Stock D 1 0.108 0.030 -0.565 -0.142 Stock E -0.117 Stock F -0.15 D 2 0.126 1.467 0.054 0.549 0.645 0.517 3 0.163 0.204 0.149 0.172 0.246 0.147 4 -0.093 -0.071 0.371 0.069 0.082 0.065 5 -0.036 0.016 -0.303 -0.108 -0.085 -0.116 6 -0.080 -0.141 0.584 0.121 0.199 0.095 7 0.096 0.097 0.100 0.098 0.157 0.078 8 -0.021 -0.050 -0.052 -0.041 -0.036 -0.043 9 0.083 0.162 -0.013 0.077 0.16 0.049 10 11 11 0.094 0.088 -0.213 -0.01 0.055 -0.032 0.326 0.246 -0.372 0.067 0.155 0.038 -
Transcribed Image Text:K The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select these two stocks since the linear correlation coefficient for Annual Rates of Returns Year Stock A Stock B Stock C Stock D 1 0.108 0.030 -0.565 -0.142 Stock E -0.117 Stock F -0.15 D 2 0.126 1.467 0.054 0.549 0.645 0.517 3 0.163 0.204 0.149 0.172 0.246 0.147 4 -0.093 -0.071 0.371 0.069 0.082 0.065 5 -0.036 0.016 -0.303 -0.108 -0.085 -0.116 6 -0.080 -0.141 0.584 0.121 0.199 0.095 7 0.096 0.097 0.100 0.098 0.157 0.078 8 -0.021 -0.050 -0.052 -0.041 -0.036 -0.043 9 0.083 0.162 -0.013 0.077 0.16 0.049 10 11 11 0.094 0.088 -0.213 -0.01 0.055 -0.032 0.326 0.246 -0.372 0.067 0.155 0.038 -
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