Question
The cash flows from two projects under different states of the economy are as follows: State of the economy Probability Project A Project B Poor
The cash flows from two projects under different states of the economy are as follows:
| State of the economy | Probability | Project A | Project B |
| Poor | 10% | $13,000 | $0 |
| Average | 20% | $14,000 | $7000 |
| Good | 70% | $16,000 | $16,000 |
Find the coefficient of correlation between the two projects.
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Quantum Economics And Finance
Authors: David Orrell
3rd Edition
1916081630, 978-1916081635
