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Consider the following table. Scenario Severe recession Mild recession Normal growth Boon Probability 8.10 0,20 0.35 8.35 Stock Fund Rate of Return -37% -11% 14%

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Consider the following table. Scenario Severe recession Mild recession Normal growth Boon Probability 8.10 0,20 0.35 8.35 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 vanance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 4 decimal places.) Mean return Variance 9.5% %-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 Squared

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