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Problem 6-6 Consider the tollowing table: Stock Fund ProbabilityRate of Retun 0.05 0.25 0.40 0.30 Bond Fund Rate of Return -11% 17% 10% Scenario -32%
Problem 6-6 Consider the tollowing table: Stock Fund ProbabilityRate of Retun 0.05 0.25 0.40 0.30 Bond Fund Rate of Return -11% 17% 10% Scenario -32% -12% 17% 22% Mild recession Normal growth Boom 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 96-Squared b. Caculate 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 96-Squared References eBook & Resources O Type here to search 4 41 PM 10/30/2018
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