Given the distributions of returns for the following two stocks, calculate the correlation coefficient of the returns for the two stocks. Assume the expected return is 14.4 percent for Stock 1 and 15.9 percent for Stock 2.
(Do not round intermediate computations.)
Prob Stock 1 Stock 2
0.5 0.11 0.18
0.3 0.17 0.15
0.2 0.19 0.12
A. 0.00054
B. –0.00271
C. 0.00120
D. -0.97169
