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Consider the following information: State of economy Probability of state Return of Stock A Return of Stock B Good 0.2 38% 13.8% Normal 0.5 16.8%
Consider the following information:
| State of economy | Probability of state | Return of Stock A | Return of Stock B |
| Good | 0.2 | 38% | 13.8% |
| Normal | 0.5 | 16.8% | 18.8% |
| Poor | 0.3 | -47.8% | 9.2% |
What is the correlation between the returns of the two stocks? Report your answer as a percentage with 2-digit precision (ex. show 12.3456% as 12.35).
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How To Understand Business Finance
Authors: Bob Cinnamon, Brian Helweg-Larsen
2nd Edition
0749460202, 978-0749460204
