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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -36% -12.0% 12%
Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -36% -12.0% 12% 32% Bond Fund Rate of Return -11% 13% 4% 5% 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 43750 %-Squared
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