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Consider the following table: Scenario Probability Severe recession Mild recession 0.25 Normal growth 0.40 Boom...

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Finance

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Consider the following table: Scenario Probability Severe recession Mild recession 0.25 Normal growth 0.40 Boom 0.30 0.05 Stock Fund Rate of Return -400 -141 170 Bond Fund Rate of Return -98 151 80 -54 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 a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance -Squared

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