Closing prices of two stocks are recorded for 50 trading days. The sample standard deviation of stock X is 4.668 and the sample standard deviation of stock Y is 8.006. The sample covariance is $36.109. (a) Calculate the sample correlation coefficient. (Round your answer to 4 decimal places.) Correlation coefficient (b) Describe the relationship between prices of these two stocks. There is no correlation between the two stock prices. rev: 02_19_2019_QC_CS-159277

0.9662 ;

There is a strong positive relationship between the stocks.

Step-by-step explanation:

Given :

Standard deviation of stock X = 4.668

Standard deviation of stock Y = 8.006

Covariance of sample = 36.109

The Correlation Coefficient, r :

(Covariance of Sample (X, Y)) ÷ (standard deviation of X * Standard deviation of Y)

r = 36.109 / (4.668 * 8.006)

r = 36.109 / 37.372008

r = 0.9662

Given the value of the correlation Coefficient, we can infer that there is a strong positive relationship between the two stocks, (X, Y). That is Stock X increases as stock Y increases and vice versa.

28x²-32x-48

Step-by-step explanation

multiply 7x*4x and 7x*-8

multiply 6*4x and 6*-8

28x²-56x+24x-48

combine like terms so add -56x to 24x and you get -32x

bring down the 28x² and the -48

and the answer is 28x²-32x-48