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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 0.25

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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 0.25 0.40 0.30 - 123 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 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 Prev 1 of 7 Next >

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