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Calculate the correlation of the two stocks below based on the scenario forecasts given: Probability Atlantis...

Calculate the correlation of the two stocks below based on the scenario forecasts given:

Probability Atlantis Co. Baltazaar Inc.
Boom 0.3            6 14%
Normal 0.6               4 4%
Bust 0.1 -10% -6%

Provide your answer in decimals, rounded to two decimals.

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

I HAVE PRESENTED IN EXCEL BUT NO EXCEL FUNCTION IS USED. IT IS A SIMPLE MATHEMATICAL CALCULATION IN TABLE FORM. VERY EASY TO REMEMBER AND PREPARE

CORRELATION =0.8

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