Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
Consider the following table:
Scenario
Severe recession
Mild recession
Normal growth
Boom
Required:
Probability
Stock Fund
Rate of Return
0.10
-46%
0.20
-24.0%
0.30
0.40
8%
44%
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 "Varlance" 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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Transcribed Image Text:Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Required: Probability Stock Fund Rate of Return 0.10 -46% 0.20 -24.0% 0.30 0.40 8% 44% 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 "Varlance" 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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