| Scenario | RD Value | RE Value | Probability of Scenario |
| 1 | -0.04 | 0.01 | 0.3 |
| 2 | 0.03 | 0.02 | 0.5 |
| 3 | 0.01 | -0.005 | 0.2 |
Q: What is the value of the correlation coefficient between RD and RE? Choose the closest answer from the ones presented below.
or
Q: How much does RD and RE’s correlation coefficient equal? Select the most accurate response from the list below.
- -0.165
- -1
- -0.379
- 0.379
- 0.165
- 0
- 1
Explanation: If you suspect they behave oppositely due to market dynamics, you might go for -0.165 or -0.379 for a negative correlation.
