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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -25% -53 10%

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -25% -53 10% 155 Band Fund Rate of Return -103 166 Required: a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round return value to 1 decimal place and "Variance to 2 decimal places.) Mean return Varance b. Calculate the value of the covariance between the stock and bond funds (Negative value should be indicated by a min not round intermediate calculations. Round your answer to 2 decimal places.) Covariance

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