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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 -37% -11% 14%

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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 -37% -11% 14% 30% Bond Fund Rate of Return -9% 15% 8% -5% 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.) This is a numeric cell, so please enter numbers only. Variance 454.4500%-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 (42.9250) %-Squared 4 decimal places required

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