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The following table,, contains annual returns for the stocks of ABC Corp. (ABC) and Company B (B). The returns are calculated using end-of-year prices (adjusted
The following table,, contains annual returns for the stocks of ABC Corp. (ABC) and Company B (B). The returns are calculated using end-of-year prices (adjusted for dividends and stock splits) retrieved from http://www.finance.yahoo.com/. Use the information to create an Excel spreadsheet that calculates the correlation coefficient for ABC and B annual returns. (Hint: Review the Excel screenshot on page 174.) The correlation coefficient is (Round to five decimal pla Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 ABC Returns B Returns 16.9% 1.2% -30.9% 12.4% 29.9% 26.1% 23.3% 52.9% 375% 30.2% -25.8% -3.6% 9.2% 9.8% 4.2% 41.9% 40.7% 40.9%
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