Consider the following probability distribution for stocks C and D: $\begin{array}{cccc}
\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \
1 & 0.30 & 7 \% & -9 \% \
2 & 0.50 & 11 \% & 14 \% \
3 & 0.20 & -16 \% & 26 \%
\end{array}$

-The coefficient of correlation between C and D is
A)0.67.
B)0.50.
C)-0.50.
D)-0.67.
E)none of the above.

Question

Consider the following probability distribution for stocks C and D: $\begin{array}{cccc}
\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \
1 & 0.30 & 7 \% & -9 \% \
2 & 0.50 & 11 \% & 14 \% \
3 & 0.20 & -16 \% & 26 \%
\end{array}$

-The coefficient of correlation between C and D is
A)0.67.
B)0.50.
C)-0.50.
D)-0.67.
E)none of the above.

Quizplus · Accepted Answer

The Answer of Consider the following probability distribution for stocks C and D: $\begin{array}{cccc}
\underline{\text { State }} &\underline{ \text { Probability }} &\underline{ \text { Return on Stock C} } &\underline{ \text { Return on Stock D} } \
1 & 0.30 & 7 \% & -9 \% \
2 & 0.50 & 11 \% & 14 \% \
3 & 0.20 & -16 \% & 26 \%
\end{array}$

-The coefficient of correlation between C and D is
A)0.67.
B)0.50.
C)-0.50.
D)-0.67.
E)none of the above.

Consider the Following Probability Distribution for Stocks C and D