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Please show all work . (the mean and variance is right, but the covariance is wrong) Consider the following table Probability 0.05 0.25 0.40 0.30
Please show all work. (the mean and variance is right, but the covariance is wrong)
Consider the following table Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -40% -14% 17% 33% Bond Fund Rate of Return -9% 15% 8% -5% Scenario Severe recession Mild recession Normal growth Boom b. 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.) 11.2% 445.9 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 28Step by Step Solution
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