Question
Consider the following probability distribution for stocks A and B: Economy Probability A B Recession 0.25 -0.03 0.06000 Normal 0.5 0.05000 0.02000 Boom 0.25 0.12000
Consider the following probability distribution for stocks A and B:
| Economy | Probability | A | B |
| Recession | 0.25 | -0.03 | 0.06000 |
| Normal | 0.5 | 0.05000 | 0.02000 |
| Boom | 0.25 | 0.12000 | -0.18 |
What is the correlation coefficient between stock A and B?
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International Finance Discussion Papers A Framework For Economic Forecasting
Authors: United States Federal Reserve Board, Neil R. Ericsson, Jaime Marquez
1st Edition
1288733585, 9781288733583
