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1. What is the correlation coefficient between the two stocks? 2. What is the correlation coefficient between stock B and the market index? Use the

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1. What is the correlation coefficient between the two stocks?

2. What is the correlation coefficient between stock B and the market index?

Use the following data for Question#9 and Question#10. RA = 3% +0.7RM + CA R-square = 0.20 Firm-specific standard deviation (ex) = 28% Firm-specific standard deviation oeb) = 64.99% RB = -2% +1.2RM + eB R-square = 0.12 OM = 20% What is the correlation coefficient between the two stocks? Your answer should be in decimal values and accurate to the hundredth (NOT in percentage points). Use the following data for Question#9 and Question#10. RA = 3% +0.7RM + CA R-square = 0.20 Firm-specific standard deviation (ex) = 28% Firm-specific standard deviation oeb) = 64.99% RB = -2% +1.2RM + eB R-square = 0.12 OM = 20% What is the correlation coefficient between the two stocks? Your answer should be in decimal values and accurate to the hundredth (NOT in percentage points)

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