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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
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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.)
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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