Question: answer part A and B Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.20 0.40 0.30 Stock Fund Rate
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 -34% -14% 19% 24% Bond Fund Rate of Return -17% 19% 123 -9% BOK ant ences 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.) 861% Mean return Vanance 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.) Covenance
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