Kris R asked:
This is the issue and I do not understand it. Can anyone assist?
“Mutual fund reports often give correlations to describe how the prices of various investments are related. You appear at the correlations among 3 Fidelity funds and the Regular & Poor’s 500 stock index, which describes stocks of big U.S. companies. The 3 funds are Dividend Growth (stocks of big U.S. companies), Small Cap Stock (stocks of small U.S. companies), and Emerging Markets (stocks in developing countries). For 2003, the 3 correlations are r = .35, r = .81, and r = .98″
Which correlation goes with each fund and why?
