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Unformatted text preview: would be a high correlation between these two funds. However the coefficient of variation (showing the amount of risk) is significant when considering correlation. Fund A would always move in the same direction as Fund B and shift directions at the exact same time, but has significantly more risk and therefore moves twice as fast as Fund B. [2.64] A) Since .00086 is the change in the proportion eaten for every change in the number of perch (slope of regression), if 10 perch are added then the proportion eaten goes up Proportion eaten = (0.0086 x 10) = 0.086 B) This prediction is nonsense because if there are no perch in the pen then there cannot be any perch eaten. Making the proportion eaten to be zero. [2.78]...
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 Spring '08
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