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Consider the following table: Bond Fund Rate of Return -8% Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.15 0.30 0.50 Stock Fund

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Consider the following table: Bond Fund Rate of Return -8% Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.15 0.30 0.50 Stock Fund Rate of Return -38% -10.0% 15% 25% 5% 6% -4% 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 1% 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

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