search for: 2_epsilon

This is not an R question but if anyone can help me, it's much appreciated. Suppose I have a series ( stationary ) y_t and a series x_t ( stationary )and x_t has variance sigma^2_x and epsilon is normal (0, sigma^2_epsilon ) and the two series have the relation y_t = Beta*x_t + epsilon My question is if there are particular values that sigma^2_x and sigma^2_epsilon have to take in order for corr(x_t,y_t) to equal Beta ? I attempted to figure this out using two different methods and in one case I end up invol...