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Suppose Japanese and US stock market returns are denoted by and , respectively. Assume you know their true moments: []=7%, []= 10%, []=.0412, []=(.30)2, []=(.25)2.
Suppose Japanese and US stock market returns are denoted by and , respectively. Assume you know their true moments: []=7%, []= 10%, []=.0412, []=(.30)2, []=(.25)2. Compute the correlation coefficient of two stock market returns. Type your answer as a decimal after rounding the number to the nearest thousandth.
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