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Based on the following stock return information for Johnson & Johnson and Walt Disney, State of Economy Probability of State of Economy Return on Johnson

Based on the following stock return information for Johnson & Johnson and Walt Disney,

State of Economy Probability of State of Economy Return on Johnson & Johnson Return on Walt Disney Co.
Sick .27 .022 .032
Normal .62 .136 .060
Healthy .11 .216 .090

The correlation between the returns of the two stocks is:

(Do not round intermediate calculations and round your answer to 4 decimal places, e.g., 32.1616.)

multiple choice

  • 0.0794

  • 0.0171

  • 0.0003

  • 0.0013

  • 0.9683

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