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Consider the following table: Sonnnno Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -28% -8% 13%

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Consider the following table: Sonnnno Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -28% -8% 13% 18% Bond Fund Rate of Retum -13% 19% 12% -9% a. Calculate the values of mean return and variance for the stock fund. (Do not round Intermediate calc 7.2 % Mean return Variance %-Squared b. Calculate the value of the covariance between the stock and bond funds. (Nogave value should be places.) Covariance %-Squared References eBook & Resources Worksheet Problem 6.6 Leaming Check my work MacBook

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