Consider the following table:

Scenario Probability Rate of Return of Stock Fund Rate of return of Bond Fund

Severe recession 0.10 40% 13%

Mild recession 0.20 20% 19%

Normal growth 0.40 25% 12%

Boom 0.30 30% 9%

a. Calculate the values of mean return and variance for the stock fund.

b. Calculate the value of the covariance between the stock and bond funds.