Question: 3- Consider the following table: (6 marks) Scenario Probability Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 fund stock fund bond return
3- Consider the following table: (6 marks) Scenario Probability Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 fund stock fund bond return rate of return rate of (25)% (10)% (5)% 16% 10% 9% 15% 6% A. Caluclate the values of mean return and variance for the stock fund B. Calculate the value of the covaiance between the stock and bond funds I DULL
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