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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 44% 13% Mild recession 0.25 16%
Consider the following table:
Stock Fund | Bond Fund | ||
Scenario | Probability | Rate of Return | Rate of Return |
Severe recession | 0.05 | 44% | 13% |
Mild recession | 0.25 | 16% | 11% |
Normal growth | 0.40 | 10% | 4% |
Boom | 0.30 | 30% | 3% |
|
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 4 decimal places.)
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