Consider the following Sok Fund Bond Fund Probably a) Calculate the values of mean return and variance for the stock fund Hint: Use a weighted average of the scenario and the stock fund rate of return for each scenario to get the mean retum. Use the formula and example in the chaptersi slides to calculate the variance between the stock and bond funds b.) Calculate the value of the covariance between the stock and bond funds. Hint: Use the formule and example in the chapters slides to calculate the covariance between the stock and bond funds 3. A pension fund manager is considering the mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 4.9%. The probability distributions of the risky funds are Stock fund (5710% Bond fund (B5% 33% The correlation between the fund returns is 0.0030 What is the expected retum and standard deviation for the minimum-variance portfolio of the tworky Pand? Hint: Use the formula and parameters: The parameters of the opportunity set of possible portfolios are El -10%, - , S- 33% 0.0030,- 49% The covariance between stocks and bonds calculated as Cos) - l-Cove 15 .02 - 2 Cow Variance for the min var portfolio Www.Core2 4. A project has a 0.34 chance of doubling your investment in a year and a 0.66 chance of halving your investment in a year. What is the standard deviation of the rate of return on this Investment? 81%