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Consider the following table Stock Fund Bond Fund Scenario Severe recession Mild recession Normal growth Probability Rate of Return Rate of Return -29% -14% 0.05
Consider the following table Stock Fund Bond Fund Scenario Severe recession Mild recession Normal growth Probability Rate of Return Rate of Return -29% -14% 0.05 -9% 20% 0.25 14% 13% e.40 19% -10% oom 0.30 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 2 decimal places.) Mean return Variance b.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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