Correlation The historical rates of return for two companies XYZ and MNP are given below. a. Find correlation between returns of the two companies. b. What can you conclude about strength and direction of the two stocks' co- movements? Year XYZ MNP 1 40.00% 40.00% 2 -10.00% 15.00% 3 35.00% - 5.00% 4 - 5.00% -10.00% 5 15.00%

Correlation The historical rates of return for two companies XYZ and MNP are given below. a. Find correlation between returns of the two companies. b. What can you conclude about strength and direction of the two stocks' co- movements? Year XYZ MNP 1 40.00% 40.00% 2 -10.00% 15.00% 3 35.00% - 5.00% 4 - 5.00% -10.00% 5 15.00%

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Description: Correlation The historical rates of return for two companies XYZ and MNP are given below.a. Find correlation between returns of the two companies. b. What can you concludeabout strength and direction of the two stocks' co - movements? Year XYZ MNP1

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter15: Decision Analysis

Section: Chapter Questions

Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...

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