Correlation coefficient for returns between stock and stock

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Reference no: EM131908137

Stock A’s returns the past 5 years have been 10%, -15%, 35%, 10%, and -20%. Stock B’s returns have been -5%, 1%, 4%, 40%, and 30%. What is the correlation coefficient for returns between stock a and stock b? My textbook said the answer is -0.35. Could you show me specifically how they came to that number?

Reference no: EM131908137

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