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Consider the following table: Stock Fund Bond Fund Rate of Rate of Return Return Scenario Probability 0.05 -38% -8% Severe recession Mild recession Normal growth

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Consider the following table: Stock Fund Bond Fund Rate of Rate of Return Return Scenario Probability 0.05 -38% -8% Severe recession Mild recession Normal growth Boom 8% 0.25 0.40 0.30 -16% 18% 32% 5% -5% b. Calculate the values of expected return and variance for the stock fund. (Do not round intermediate calculations. Enter "Expected return" value as a percentage rounded to 1 decimal place and "Variance" as decimal number rounded to 4 decimal places.) Expected return Variance 10.9 % .0454 c. 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. Enter your answer as a decimal number rounded to 4 decimal places.) Covariance

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