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Consider the following table: Scenario Severe recession Mild recession Nornal growth Boom Probability 0.20 0.28 0.35 0.25 Stock Fund Rate of Return -38 -26.04 BU

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Consider the following table: Scenario Severe recession Mild recession Nornal growth Boom Probability 0.20 0.28 0.35 0.25 Stock Fund Rate of Return -38 -26.04 BU 464 Bond Fund Rate of Return -12% 75 34 74 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 4 decimal places.) Mean retum Variance % %-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 1% Squared

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