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Consider the following table: Stock Fund Bond Fund Probability Scenario Rate of Return Rate of Return Severe recession 0.10 -38% -11% Mild recession 0.20 -18
Consider the following table: Stock Fund Bond Fund Probability Scenario Rate of Return Rate of Return Severe recession 0.10 -38% -11% Mild recession 0.20 -18 % 17% Normal growth 0.40 23% 10% om 0.30 28% -7% 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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