Probability RA(in %) RB (in %) 0.1 6 3 نیا 0.2 5 5 0.3 4 2 0.2 نیا 3 6 0.2 8 4

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter9: Metric-analysis Of Financial Statements
Section: Chapter Questions
Problem 3SEQ
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Hi there,

I am working on a problem about joint probability distribution for stock returns. I have attached a graph below that has information on two stocks. My question is, how do I calculate the correlation coefficient between the two stock returns? 

Can you please explain in steps how to solve this, thank you.

Probability
RA(in %)
RB (in %)
0.1
6
3
نیا
0.2
5
5
0.3
4
2
0.2
نیا
3
6
0.2
8
4
Transcribed Image Text:Probability RA(in %) RB (in %) 0.1 6 3 نیا 0.2 5 5 0.3 4 2 0.2 نیا 3 6 0.2 8 4
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