Explanation

The correlation coefficient formula is:

$\text{Corr}(R_X, R_Y) = \frac{\text{Cov}(R_X, R_Y)}{\sigma_X \cdot \sigma_Y}$

Given:

• Cov(R_X, R_Y) = 0.093
• Variance of R_X = 0.69
• Variance of R_Y = 0.36

First, calculate the standard deviations: $\sigma_X = \sqrt{0.69} = 0.830662$ $\sigma_Y = \sqrt{0.36} = 0.6$

Now calculate the correlation: $\text{Corr}(R_X, R_Y) = \frac{0.093}{0.830662 \times 0.6} = \frac{0.093}{0.4983972} = 0.1865$

Therefore, the correlation is 0.1865, which corresponds to option B.