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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 28% 10% Mild recession 0.20 8%
Consider the following table:
Stock Fund | Bond Fund | ||
Scenario | Probability | Rate of Return | Rate of Return |
Severe recession | 0.10 | 28% | 10% |
Mild recession | 0.20 | 8% | 12% |
Normal growth | 0.35 | 4% | 2% |
Boom | 0.35 | 42% | 7% |
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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