Question
Problem 6-7 (Algo) Consider the following table: {:[ Scenario , Probability ,{:[ Stock Fund ],[ Rate of Return ]:},{:[ Bond Pund ],[ Rate of Return
Problem 6-7 (Algo) Consider the following table: {:[" Scenario "," Probability ",{:[" Stock Fund "],[" Rate of Return "]:},{:[" Bond Pund "],[" Rate of Return "]:}],[" Severe recession ",0.10,-288,-108],[" Mild recession ",0.20,-8.08,128],[" Normal growth ",0.35,43,28],[" Boom ",0.35,428,78]:} Required: 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 4 decimal places.) Mean return % and Variance %-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 4 decimal places.) Covariance %-Squared?
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