Question: Problem 6-7 (Algo) Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.10 -30% -11%

Problem 6-7 (Algo) Consider the following table: Scenario Probability Stock Fund Rate

Problem 6-7 (Algo) Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.10 -30% -11% Mild recession 0.15 Normal growth e.35 -12.ex 6% 8% 2% Boon 0.40 39% 5% Required: 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 4 decimal places.) Mean return Variance -Squared 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 4 decimal places.) Covariance -Squared

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