|Author||Topic: Quants Question HELP|
|How do you answer this question? I am really stuck because it doesn't give the standard deviation and i just can't find any formula to help!
Using a sample of 28 quarterly observations, an analyst determines that the correlation coefficient between stock A and B is 0.35. What is the computed T-stat and is this correlation coefficient sig dif from 0 @ 5% confidence level?
A 1.91 No
B 2.03 Yes
C 1.91 Yes
D 2.11 Yes
|C is the right t statistic, correlation coefficient is not sig dif. from zero because the critical value is 2,056 (n-2=26)> 1,91|