You are interested in whether the returns on Asset A are negatively correlated with the returns on Asset B. Consider the following annual return data on the two assets:
a. Calculate and interpret the Spearman rank correlation coefficient rs.
b. Specify the competing hypotheses in order to determine whether the asset returns are negatively correlated.
c. At the 1 % significance level, specify the critical value.
d. What is the conclusion to the test? Are the returns negatively correlated?