The value of a correlation is reported to be r = 0.25. How is this interpreted?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter6: Risk And Return
Section6.5: Risk In A Portfolio Context
Problem 2ST
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The value of a correlation is reported to be r = 0.25. How is this interpreted?

 

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