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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Probability Rate of Return 0.11 -34% 0.16 -12% 0.58 17% 0.15

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Stock Fund Probability Rate of Return 0.11 -34% 0.16 -12% 0.58 17% 0.15 49% Bond Fund Rate of Return -16% -4% 7 % a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 decimal places and "Variance" to 4 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 4 decimal places.) Covariance

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