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Consider the following table: Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -38% -6% 10% 4096 Bond Fund Rate of Return -14% 10%

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Consider the following table: Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -38% -6% 10% 4096 Bond Fund Rate of Return -14% 10% 4% 4% Severe ion Normal growth Boom a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate 12.5% b. Calculate the value of the covariance between the stock and bond funds. (Negative value shoule decimal places.) Covariance References eBook&Resources

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