Over the Past 30 Years, the Sample Standard Deviations of the Rates

Multiple Choice

Over the past 30 years, the sample standard deviations of the rates of return for stock X and Stock Y were 0.20 and 0.12, respectively. The sample covariance between the returns of X and Y is 0.0096. To determine whether the correlation coefficient is significantly different from zero, the appropriate hypotheses are ________.

A) H₀: μ = 0, H_A: μ ≠ 0
B) H₀: ρ_xy = 0, H_A: ρ_xy ≠ 0
C) H₀: μ = 1, H_A: μ ≠ 1
D) H₀: ρ_xy = 1, H_A: ρ_xy ≠ 1