Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 –28 % –13 % Mild recession 0.25 –8 % 19 % Normal growth 0.40 13 % 12 % Boom 0.30 18 % –9 % a.Calculate the values...

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Finance

Consider the following table:
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.05 –28 % –13 %
Mild recession 0.25 –8 % 19 %
Normal growth 0.40 13 % 12 %
Boom 0.30 18 % –9 %

a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.)

b.Calculate the value of the covariance betweenthe stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 2 decimal places.)

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Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.05–28%–13%Mild recession0.25–8%19%Normal growth0.4013%12%Boom0.3018%–9%a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.)b.Calculate the value of the covariance betweenthe stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 2 decimal places.)

		Stock Fund		Bond Fund
Scenario	Probability	Rate of Return		Rate of Return
Severe recession	0.05	–28	%	–13	%
Mild recession	0.25	–8	%	19	%
Normal growth	0.40	13	%	12	%
Boom	0.30	18	%	–9	%