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13.33 points Consider the following table Stock Fund Rate of Return 38% -10% 15% 25% Bond Fund Rate of Return -8% 5% 6% -4% Scenario
13.33 points Consider the following table Stock Fund Rate of Return 38% -10% 15% 25% Bond Fund Rate of Return -8% 5% 6% -4% Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.15 0.30 0.50 a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to decimal places.) Mean return Variance %-squared b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round answer to 4 decimal places.) Covariance %-Squared
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