Question $4$

$4$ pts

Annual returns of Stock A and $B$ in the past $5$ years are presented in the following table:

$\backslash$table$[[,$Year $1,$Year $2,$Year $3,$Year $4,$Year $5],[$Stock A$,0\mathrm{.}12,0\mathrm{.}18,-0\mathrm{.}06,0\mathrm{.}02,0\mathrm{.}03],[$Stock B$,-0\mathrm{.}02,0\mathrm{.}08,0\mathrm{.}04,0\mathrm{.}06,-0\mathrm{.}04]]$

Obtain the correlation coefficient between the returns of the two stocks.

$0\mathrm{.}0240$

$0\mathrm{.}0518$

$0\mathrm{.}1365$

$0\mathrm{.}0934$