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5. Bivariate Distribution. The following table shows the returns of two types of investments, stocks (x) and bonds (y), under two different scenarios: boom and

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5. Bivariate Distribution. The following table shows the returns of two types of investments, stocks (x) and bonds (y), under two different scenarios: boom and recession. The frequency f( 0) indicated the probability of boom and recession, and it is the same for any type of investment. [You can solve this problem either by Excel or by hand. Please write down your math formula, not Excel fu nction.] III iaondsw III-III \"III-III- III a) What is the expected return from stocks? What is the risk (standard deviation) of a stocks investment? (5) b) What is the expected return from bonds? What is the risk (standard deviation) of a bonds investment? (5) c) What is the covariance between stocks and bonds

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