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Scenario Probability Severe recession 0.05 Mild recession 0.25 Normal growth 0.40 Boom 0.30 Stock Fund Rate of Return -400 -14 174 330 Bond Fund Rate

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Scenario Probability Severe recession 0.05 Mild recession 0.25 Normal growth 0.40 Boom 0.30 Stock Fund Rate of Return -400 -14 174 330 Bond Fund Rate of Return -98 158 88 -50 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.) Answer is complete but not entirely correct. 112 Mean return Variance % % Squared 187.86 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.) Covariance X-Squared

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