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Scenario Severe recession Mild recession Normal growth Boom Mean return Variance table. Probability 0.10 0.20 0.40 0.30 Covariance a.Calculate the values of mean return and
Scenario Severe recession Mild recession Normal growth Boom Mean return Variance table. Probability 0.10 0.20 0.40 0.30 Covariance 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.) Stock Fund Rate of Return -44% -24% 29% 34% % Bond Fund Rate of Return -11% 17% 10% -7% 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.)
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