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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Bond Fund Probability Rate of Return Rate of Return 0.05 -40%

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Bond Fund Probability Rate of Return Rate of Return 0.05 -40% -9% 0.25 -14% 15% 0.40 17% 0.30 -5% 33% 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.) Mean return Variance 11.2 % 8.43 %-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 2 decimal places.) Covariance %-Squared

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