Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 –37 % –9 % Mild recession 0.20 –11 % 15 % Normal growth 0.35 14 % 8 % Boom 0.35 30 % –5 % a. Calculate the...

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Finance

Consider the following table:
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.10 –37 % –9 %
Mild recession 0.20 –11 % 15 %
Normal growth 0.35 14 % 8 %
Boom 0.35 30 % –5 %

a. Calculate the values of mean return andvariance for the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 4 decimal places.)
Mean return 9.5 correct %
Variance 0.0454 incorrect %-Squar
b. Calculate the value of the covariancebetween the stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 4 decimal places.)
Covariance (0.0043) incorrect %-Squared

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Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.10–37%–9%Mild recession0.20–11%15%Normal growth0.3514%8%Boom0.3530%–5%a. Calculate the values of mean return andvariance for the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 4 decimal places.)Mean return9.5 correct%Variance0.0454 incorrect%-Squarb. Calculate the value of the covariancebetween the stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 4 decimal places.)Covariance(0.0043) incorrect%-Squared

		Stock Fund		Bond Fund
Scenario	Probability	Rate of Return		Rate of Return
Severe recession	0.10	–37	%	–9	%
Mild recession	0.20	–11	%	15	%
Normal growth	0.35	14	%	8	%
Boom	0.35	30	%	–5	%