Idaho Slopes (IS) and Dakota Steppes (DS) are both seasonal businesses. IS is a downhill skiing facility, while DS is a tour company that specializes in walking tours and camping. The equally likely returns on each company over the next year is expected to be:

Economy	Idaho Slopes	Dakota Steppes
Strong Downturn	-10%	2%
Mild Downturn	-4%	7%
Slow Growth	4%	6%
Moderate Growth	12%	4%
Strong Growth	20%	4%

The correlation between the returns of IS and DS is:

Multiple Choice

• +0.30

• -0.03

• +1.00

• -1.10

• 0.03