Question
Consider the following table: Scenario Probability Stock Fund ROR Bond Fund ROR Severe Recession 0.10 -42% -9% Mild Recession 0.20 -22% 15% Normal Growth 0.40
Consider the following table:
Scenario Probability Stock Fund ROR Bond Fund ROR
Severe Recession 0.10 -42% -9%
Mild Recession 0.20 -22% 15%
Normal Growth 0.40 27% 8%
Boom 0.30 32% -5%
a.Calculate the values of mean return and variance for the stock fund.(Do not round intermediate calculations. Round "Mean return" value to 2 decimal place and "Variance" to 2 decimal places.)
Mean Return =
Variance =
c.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.)
Co-variance =
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