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Consider the following table: Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return Severe recession 0.10 46% 20% Mild recession 0.20 24.0%

Consider the following table:

Scenario Probability Stock Fund Rate of Return Bond Fund Rate of Return
Severe recession 0.10 46% 20%
Mild recession 0.20 24.0% 14%
Normal growth 0.30 8% 5%
Boom 0.40 44% 5%

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 4 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 4 decimal places.)

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