Finance Assignment | Professional Writing
May 31st, 2020
Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -30% -10% 15% 20% Bond Fund Rate of Return -996 15% 8% -5% 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.) Mean return Variance %-Squared b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance %-Squared
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