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Consider the following table: Scenario Probability Stock Fund rate of return Bond fund rate of return Severe Recession .05 -32% -10% Mild Recession .25 -10%

Consider the following table:

Scenario Probability Stock Fund rate of return Bond fund rate of return
Severe Recession .05 -32% -10%
Mild Recession .25 -10% 6%
Normal Growth .40 22% 10%
Boom .30 37% 7%

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

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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