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Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.05 31% 10% Mild recession 0.25 11%

Consider the following table:

Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return
Severe recession 0.05 31% 10%
Mild recession 0.25 11% 16%
Normal growth 0.40 16% 9%
Boom 0.30 21% 6%

Required:

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 2 decimal places.)

b. Calculate the value of the covariance between the stock and bond funds.

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