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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -25% -5% 10%

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -25% -5% 10% 15% Bond Fund Rate of Return -10% 16% 9% -6% Required: a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calcul return" value to 1 decimal place and "Variance" to 2 decimal places.) Mean return Varance 6.01% b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicar not round intermediate calculations. Round your answer to 2 decimal places.) Covariance

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