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Consider the following table: Stock Fund Rate of Return -34% Scenario Severe recession Mild recession Normal growth Boom Probability 0.12 0.30 0.44 0.14 Bond Fund

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Consider the following table: Stock Fund Rate of Return -34% Scenario Severe recession Mild recession Normal growth Boom Probability 0.12 0.30 0.44 0.14 Bond Fund Rate of Return -17% -2% 3% 9% -13% 11% 32% a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 decimal places and "Variance" to 4 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 4 decimal places.) Covariance

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