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Consider the followin g table Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.15 0.20 0.30 0.35 Stock Fund Rate
Consider the following table
Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.15 0.20 0.30 0.35 Stock Fund Rate of Return -30% -15.0% 9% 38% Bond Fund Rate of Return -8% 20% 4% -6% 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.) 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 your answer to 4 decimal places.) Covariance %-Squared Check my workStep by Step Solution
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