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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Probability Rate of Return Bond Fund Rate of Return 0.10
Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Probability Rate of Return Bond Fund Rate of Return 0.10 -38% -11% 0.20 -18% 17% 0.40 0.30 23% 28% 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
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