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Scenario Recession Normal Boom Probabilit 0.2 0.7 Stock Fund Rate of Return -22.0% 4.0% 43.0% Bond Fund Rate of Return 3.0% -5.0% 10.0% 1. Determine

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Scenario Recession Normal Boom Probabilit 0.2 0.7 Stock Fund Rate of Return -22.0% 4.0% 43.0% Bond Fund Rate of Return 3.0% -5.0% 10.0% 1. Determine the mean return for the Stock Fund and the mean return for the Bond Fund 2. Find the variance of the returns and the standard deviation of returns on the Stock Fund 3, Determine the mean return on a portfolio that consists of 75% in the Stock Fund and 4. Calculate the variance of the returns for the portfolio specified in problem (3). 5. Compute the covariance and the correlation between the Stock Fund's returns and the and then repeat for the Bond Fund 25% in the Bond Fund Calculate the standard Deviation Bond Fund's return

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