Question: Consider the following table Probability 0.05 0.25 0.40 0.30 Fund Bond Fun Rate of Return Rate of R -11% 17% 10% Scenario Severe recession Mild
Consider the following table Probability 0.05 0.25 0.40 0.30 Fund Bond Fun Rate of Return Rate of R -11% 17% 10% Scenario Severe recession Mild recession Normal growth Boom -32% -12% 17% 22% b. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 decimal place and "Variance" to 2 decimal places.) 881% Mean return Variance c. 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.) Covariance
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