During the last 4 months, the return on a stock and the return on the S&P market index was as follows.
Stock Market
10% 12%
-20% -12%
6% 2%
4% -2%
Rounded to the nearest hundredth, the correlation between the monthly return on the stock and the S&P market index is:
a. 0.60
b. 0.70
c. 0.80
d. 0.90
e. None of the above
Answers: 3
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