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Consider the following table: Stock Fund Bond Fund ScenarioProbability Rate of Return Rate of Return Severe recession 0.05 –32% –11 % Mild recession 0.25 –12 % 17 % Normal growth 0.40 17 % 10 %Boom 0.30 22 % –7 % a.Calculate the values of mean return andvariance for the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.) b.Calculate the value of thecovariance between the stock and bond funds. (Negative value shouldbe indicated by a minus sign. Do not round intermediatecalculations. Round your answer to 2 decimal places.)
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