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Question 11 Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -37%

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Question 11 Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.35 0.35 Stock Fund Rate of Return -37% -11% 14% 30% Bond Fund Rate of Return -9% 15% 8% -5% a. Calculate the mean return of the stock fund. b. Calculate the standard deviation of the stock fund. c. Calculate the covariance between the stock and bond funds. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B 1 ] Paragraph Arial 10pt > ili >

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