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Consider the following table: Scenario Probability Stock fund rate of return Bond fund rate of return Severe recession 0.10 -34% -9 5 Mild recession 0.20

Consider the following table:

Scenario Probability Stock fund rate of return Bond fund rate of return

Severe recession 0.10 -34% -9 5

Mild recession 0.20 -20.0% 5%

Normal growth 0.30 21% 9%

Boom 0.40 36% -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 %

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