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Consider the following table: Stock Fund Bond Fund Rate of Return Scenario Severe recession Probability...

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Accounting

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Consider the following table: Stock Fund Bond Fund Rate of Return Scenario Severe recession Probability Rate of Return 0.10 -43% -12% Mild recession 0.20 -17% 17% 12% Normal growth 0.30 6% 31% Boom 0.40 4% a. Calculate the values of mean return and variance for the stock fund. (Do not round interr Round "Mean return" value to 1 decimal place and "Variance" to 4 decimal places.) 06 Mean return %-Squared Variance b. Calculate the value of the covariance between the stock and bond funds. (Negative value sho a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places. %-Squared Covariance Next > 31

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