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Consider the following table! Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20...

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Finance

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Consider the following table! Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.40 0.30 Stock Fund Rate of Return -42% -22% 27% 32% Bond Fur Rate of Re -9 15 8 -5 Required: 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.) 11.8% Mean return Variance 7.30 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 (0.00)

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