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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.15 0.30 0.50 Stock Fund Rate of Return - - 10.05

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.15 0.30 0.50 Stock Fund Rate of Return - - 10.05 15% 25% Bond Fund Rate of Return -8% 5% 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.) 13.61% Mean return Variance 282 2400 %-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 (173400) %-Squared

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