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Find the Varience and Coverience Consider the following table: Stock Fund Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 28% -8% 1396
Find the Varience and Coverience
Consider the following table: Stock Fund Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 28% -8% 1396 18% Bond Fund Rate of Return -13% 19% 12% -99% 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.) 7.21 % Variano 11 %-Squared 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.) %-SquaredStep by Step Solution
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