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Consider the following table Stock Fund Rate of Return Bond Fund Rate of Return Probability 0.05 0.25 0.40 0.30 Scenaric Severe recession Mild recession Normal
Consider the following table Stock Fund Rate of Return Bond Fund Rate of Return Probability 0.05 0.25 0.40 0.30 Scenaric Severe recession Mild recession Normal growth Boom 25% 5% 10% 15% 10% 16% 9% b. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 decimal place and "Variance" to 2 ecimal places. Mean return Variance c. 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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