Correlation coefficients are indicators of the strength of the linear relationship between two different variables, x and y. A linear correlation coefficient that is greater than zero indicates a ...
Correlation coefficients range from -1 to +1, indicating the strength of relationships between variables. Investors use correlation coefficients for portfolio diversification to reduce risk.
In this case: ?p = xA2 ?A2 + xB2 ?B2 + 2 xAxB?A?B?AB ?p = .25(.10)2+.25(.20)2+2(.5)(.5)(.10)(.20) ?p = .15 or 15% ...