Consider the following probability distribution for stocks A and B: $\begin{array}{cccc}
\text { State } & \text { Probability } & \text { Return on Stock A}&\text { Return on Stock E } \
1 & 0.10 & 10 \% & 8 \% \
2 & 0.20 & 138 & 78 \
3 & 0.20 & 128 & 68 \
4 & 0.30 & 148 & 98 \
5 & 0.20 & 158 & 8 \%
\end{array}$
The coefficient of correlation between A and B is (Do not round intermediate calcuations.)
A) 0.47.
B) 0.60.
C) 0.58.
D) 1.20.

Question

Consider the following probability distribution for stocks A and B: $\begin{array}{cccc}
\text { State } & \text { Probability } & \text { Return on Stock A}&\text { Return on Stock E } \
1 & 0.10 & 10 \% & 8 \% \
2 & 0.20 & 138 & 78 \
3 & 0.20 & 128 & 68 \
4 & 0.30 & 148 & 98 \
5 & 0.20 & 158 & 8 \%
\end{array}$
 The coefficient of correlation between A and B is (Do not round intermediate calcuations.)
A) 0.47.
B) 0.60.
C) 0.58.
D) 1.20.

Quizplus · Accepted Answer

The Answer of Consider the following probability distribution for stocks A and B: $\begin{array}{cccc}
\text { State } & \text { Probability } & \text { Return on Stock A}&\text { Return on Stock E } \
1 & 0.10 & 10 \% & 8 \% \
2 & 0.20 & 138 & 78 \
3 & 0.20 & 128 & 68 \
4 & 0.30 & 148 & 98 \
5 & 0.20 & 158 & 8 \%
\end{array}$
 The coefficient of correlation between A and B is (Do not round intermediate calcuations.)
A) 0.47.
B) 0.60.
C) 0.58.
D) 1.20.

Consider the Following Probability Distribution for Stocks a and B