Question: value: 10.00 points Consider the following table: Bond Fund Rate of Return -11% 15% 2% -5% Stock Fund Scenario Probability Rate of Return 30% Severe
value: 10.00 points Consider the following table: Bond Fund Rate of Return -11% 15% 2% -5% Stock Fund Scenario Probability Rate of Return 30% Severe recession Mild recession Normal growth Boom 0.15 0.25 0.35 0.25 -12.0% 6% 39% 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 returrn 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 96-Squared
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