Reference no: EM132461823
The following table shows the annual returns (in percent) for T. Rowe Price's Value and International Stock funds for the time period 2005-2009.
Year Value Fund International Fund
2005 6.30 16.27
2006 19.75 19.26
2007 0.75 13.43
2008 -39.76 -48.02
2009 37.15 52.20
a-1. Calculate the covariance between returns. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
covariance returns is...
a-2. Interpret the covariance between returns.
(a positive, a negative, no)
b-1. Calculate the coefficient of correlation. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
Correlation coefficient is....
b-2. Interpret the correlation coefficient between returns.
(strong positive relationship, negative strong relationship, no)