Question
You expect the following set of possible outcomes for an investment of $120,000: Action Taken Probability Expected Return (Dollars) Invest in stocks 60% 40,000 30%
You expect the following set of possible outcomes for an investment of $120,000:
| Action Taken | Probability | Expected Return (Dollars) |
| Invest in stocks | 60% | 40,000 |
| 30% | 10,000 | |
| 10% | -20,000 | |
| Invest in T-bill | 100% | 5,000 |
What is the correlation of dollar returns for investing in stocks with those for investing in T-bills? Please enter your answer rounded to the third decimal place.
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Finance Applications And Theory
Authors: Marcia Cornett, Troy Adair, John Nofsinger
1st Edition
0073382256, 9780073382258
