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  3. consider the following table: stock fund bond

Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.10 −36% −11% Mild recession 0.20 −12% 13% Normal growth 0.35 12% 4% Boom 0.35 32% 5% a. Calculate the...

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Finance

Consider the following table:

Stock FundBond Fund
ScenarioProbabilityRate of ReturnRate of Return
Severe recession0.10−36%−11%
Mild recession0.20−12%13%
Normal growth0.3512%4%
Boom0.3532%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 2 decimal places.)

Mean return%
Variance


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.)

Covariance           

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