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Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.05 25% 10% Mild recession 0.25 5%

Consider the following table:

Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return
Severe recession 0.05 25% 10%
Mild recession 0.25 5% 16%
Normal growth 0.40 10% 9%
Boom 0.30 15% 6%

Required:

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.)

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.)

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