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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 8.40 8.30 Stock Fund Rate of Return -40% -14% 17%

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 8.40 8.30 Stock Fund Rate of Return -40% -14% 17% Bond Fund Rate of Return -9% 15% 33% -5% a. Calculate the values of mean return and varlance for the stock fund. (Do not round Intermediate calculations. Round "Mean return" value to 1 decimal place and "Varlance" to 2 decimal places.) 96 Mean return Variance %-Squared b. Calculate the value of the covarlance 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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