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Start all answers with = like in excel. Consider the performance of a stock fund and a bond fund, based on the state of the
Start all answers with = like in excel.
Consider the performance of a stock fund and a bond fund, based on the state of the economy. State of Economy Boom Normal Growth Recession Severe Recession O 1 Mean 2 Variance 3 Standard Deviation 4 Measurement Covariance (Stock and Bond Funds) Correlation Probability 0.2500 0.4500 0.2750 0.0250 Stock Fund 11.98% 0.0541 23.25% -0.05% -9.68% Stock Fund: Rate of Return Bond Fund 0.4500 0.1300 -0.1500 -0.4000 6.34% 0.0004 2.06% D Bond Fund: Rate of Return 0.0500 0.0700 0.0750 -0.0500 15 16 17 Required: 18 Using the information in the table above and the weights below, calculate the mean, varlance, and standard deviation of a combined portfolio. 19 G 20 Stock Fund 21 Bond Fund 22 23 (Use cells A5 to D21 from the given information to complete this questio 24 25 26 Mean 27 Variance 28 Standard Deviation 29 70% 30% Portfolio PerformanceStep by Step Solution
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