Correlation coefficient between the returns of the two stock, Accounting Basics

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Correlation coefficient between the returns of the two stock

Problem:

The covariance of the returns between Einstein stock and bohr stock is 0.0087. The standard deviation of Einstein is 0.26, and the standard deviation of Bohr is 0.37.

Required:

Question: What is the correlation coefficient between the returns of the two stocks?

Note: Provide specific examples to support your answers.

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Accounting Basics: Correlation coefficient between the returns of the two stock

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Accounting Basics: Correlation coefficient between the returns of the two stock

Reference No:- TGS0891617

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

Q : Economic ordering quantity

Q : Rationale for recognizing costs

Q : Find out the npv of the project

Q : Find out the stock predicted return

Q : Correlation coefficient between the returns of the two stock

Q : Expected returns increased to reflect

Q : Current dividend per share

Q : Value of the stock

Q : Find out the market risk premium

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Ask an Expert for Answer!!

Accounting Basics: Correlation coefficient between the returns of the two stock

Reference No:- TGS0891617

Recent Questions Asked Accounting Basics

Q : Economic ordering quantity

Q : Rationale for recognizing costs

Q : Find out the npv of the project

Q : Find out the stock predicted return

Q : Correlation coefficient between the returns of the two stock

Q : Expected returns increased to reflect

Q : Current dividend per share

Q : Value of the stock

Q : Find out the market risk premium

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