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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0 . 1 0 - 4 1
Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession Mild recession Normal growth Boom a Calculate the values of mean return and variance for the stock fund. Do not round intermediate calculations. Round "Mean return" value to decimal place and "Variance" to decimal places. Mean return Varianceb. 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 decimal places. Covariance
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