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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 36% 11% Mild recession 0.20 12%
| Consider the following table: |
| Stock Fund | Bond Fund | ||
| Scenario | Probability | Rate of Return | Rate of Return |
| Severe recession | 0.05 | 36% | 11% |
| Mild recession | 0.20 | 12% | 13% |
| Normal growth | 0.40 | 15% | 4% |
| Boom | 0.35 | 32% | 5% |
Calculate the value of the covariance between the stock and bond funds. Do not round intermediate calculations. Enter a decimal number rounded to 5 decimal places
| Covariance? |
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
4th Edition
1567932800, 978-1567932805
