The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select Stock A and Stock C, since the linear correlation coefficient for these two stocks is closest to 0. If your goal is to have one stock go up when the other goes down, you should select since the linear correlation coefficient for these two stocks Annual Rates of Returns Year 1 2 3 4 7 8 9 10 11 Stock A 0.480 0.046 0.126 0.316 -0.258 0.496 0.085 -0.044 -0.011 -0.181 -0.316 Stock B 0.091 0.106 0.137 -0.080 -0.032 -0.069 0.081 -0.019 0.069 0.079 0.276 Print Stock C Stock D 0.027 -0.121 1.320 0.491 0.149 0.057 -0.092 0.1 0.084 -0.036 0.068 -0.008 0.06 0.184 -0.064 0.014 -0.127 0.087 -0.045 0.146 0.079 0221 Done CCCCS Ď Stock A and Stock C Stock A and Stock B Stock Band Stock D Stock Band Stock C Stock A and Stock D Stock C and Stock D

The data in the accompanying table represent the annual rates of return for various stocks. If you only wish to invest in two stocks, which two would you select if your goal is to have low correlation between the two investments? Which two would you select if your goal is to have one stock go up when the other goes down? Click the icon to view the table of annual rates of returns. If your goal is to have low correlation between the two investments, you should select Stock A and Stock C, since the linear correlation coefficient for these two stocks is closest to 0. If your goal is to have one stock go up when the other goes down, you should select since the linear correlation coefficient for these two stocks Annual Rates of Returns Year 1 2 3 4 7 8 9 10 11 Stock A 0.480 0.046 0.126 0.316 -0.258 0.496 0.085 -0.044 -0.011 -0.181 -0.316 Stock B 0.091 0.106 0.137 -0.080 -0.032 -0.069 0.081 -0.019 0.069 0.079 0.276 Print Stock C Stock D 0.027 -0.121 1.320 0.491 0.149 0.057 -0.092 0.1 0.084 -0.036 0.068 -0.008 0.06 0.184 -0.064 0.014 -0.127 0.087 -0.045 0.146 0.079 0221 Done CCCCS Ď Stock A and Stock C Stock A and Stock B Stock Band Stock D Stock Band Stock C Stock A and Stock D Stock C and Stock D

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter4: Equations Of Linear Functions

Section4.5: Correlation And Causation

Problem 15PPS

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