Consider the following table: Stock Fund Rate of Return -38% -6% 10% 40% Bond Fund...
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Consider the following table: Stock Fund Rate of Return -38% -6% 10% 40% Bond Fund Rate of Return -14% 10% 4% 4% Scenario Probability Severe recession Mild recession Normal growth Boom 0.10 0.20 0.35 0.35 a. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean re turn" value to 1 decimal place and "Variance" to 2 decimal places.) Mean return 12.50 % Variance 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 places.) . Round your answer to 2 decimal Covariance - 3.4
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