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3 Consider the following table: 10 points Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.30 0.40 Stock Fund Rate of Return

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3 Consider the following table: 10 points Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.30 0.40 Stock Fund Rate of Return -340 -20.0% 210 361 Bond Fund Rate of Return -91 51 90 68 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 4 decimal places.) Answer is complete but not entirely correct. 13.3% Mean return Variance 0.0497 Squared

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