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Consider the following table: Bond Fund Rate of Return Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 2.35 0.35 Stock Fund Rate

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Consider the following table: Bond Fund Rate of Return Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 2.35 0.35 Stock Fund Rate of Return -18% -4.0x 23% 43% 12% 18% 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. Mean return 20.5% Variance 4.4875 X 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.) Answer is complete but not entirely correct. Covariance 0.0438 Souared

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