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Considering the following probability distribution for stocks A and B, compute the coefficient of correlation between A and B. State Probability Return on Stock A

  1. Considering the following probability distribution for stocks A and B, compute the coefficient of correlation between A and B.

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State Probability Return on Stock A Return on Stock B 1 0.15 2 2 0.20 13 79 0.15 1200 + 0.30 14 9 5 0.20 16 11

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