Question 10.32

10.32 Are inflows into stocks and bonds correlated?

Is the correlation between net flow of money into stock mutual funds and into bond mutual funds significantly different from 0? Use the regression analysis you did in Exercise 10.30 part (b) to answer this question with no additional calculations.

flow

Table 10.6: TABLE 10.4 Net new money (millions of $) flowing into stock and bond mutual funds

Year	Stocks	Bonds	Year	Stocks	Bonds	Year	Stocks	Bonds
1984	4,336	13,058	1994	114,525	−62,470	2004	171,831	−15,062
1985	6,643	63,127	1995	124,392	−6,082	2005	123,718	25,527
1986	20,386	102,618	1996	216,937	2,760	2006	147,548	59,685
1987	19,231	6,797	1997	227,107	28,424	2007	73,035	110,889
1988	−14,948	−4,488	1998	156,875	74,610	2008	−229,576	30,232
1989	6,774	−1,226	1999	187,565	−4,080	2009	−2,019	371,285
1990	12,915	6,813	2000	315,742	−50,146	2010	−24,477	230,492
1991	39,888	59,236	2001	33,633	88,269	2011	−129,024	115,107
1992	78,983	70,881	2002	−29,048	141,587	2012	−152,234	301,624
1993	127,261	70,559	2003	144,416	32,360	2013	159,784	−80,463

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