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Florida Company (FC)and Minnesota Company (MC)are Both Service Companies

Question 50

Multiple Choice

Florida Company (FC) and Minnesota Company (MC) are both service companies.Their stock returns for the past three years were: FC: -5%,15%,20%; MC: 8%,8%,20%.
Calculate the correlation coefficient between the returns of FC and MC.


A) 0.000
B) -0.655
C) +0.655
D) 0.500

Correct Answer:

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