onsider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.20 0.30 0.45 Mean return Varian Stock Fund Rate of Return 15.3% -30% -15.0% 9% 38% Bond Fund Rate of Return equired: . Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mea eturn" value to 1 decimal place and "Variance" to 4 decimal places.) -8% 8% 4% 6%
onsider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.20 0.30 0.45 Mean return Varian Stock Fund Rate of Return 15.3% -30% -15.0% 9% 38% Bond Fund Rate of Return equired: . Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mea eturn" value to 1 decimal place and "Variance" to 4 decimal places.) -8% 8% 4% 6%
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Related questions
Question

Transcribed Image Text:Consider the following table:
Scenario
Severe recession
Mild recession
Normal growth
Boom
Mean return
Variance
Probability
0.05
0.20
0.30
0.45
Covariance
15.3%
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.)
%-Squared
Stock Fund
Rate of Return
-30%
-15.0%
9%
38%
%-Squared
Bond Fund
Rate of Return
-8%
8%
4%
6%
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.)
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