Question

Asked Nov 10, 2019

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the variance of stock A is .004, the variance of the market .007 and the covariance between the two is .0026. what is the correlation coefficient?

Step 1

Given that the variance of stock A is 0.004, and variance of the market is 0.007. First we need to calculate the standard deviation of stock A and the market.

Step 2

Step 3

Given that, the covariance between stock A and the market is 0.002...

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