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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.20 0.30 0.45 Stock Fund Rate of Return -418 -11.00 8%

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.20 0.30 0.45 Stock Fund Rate of Return -418 -11.00 8% 34% Bond Fund Rate of Return -18% 148 58 69 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.) Mean return Variance %-Squared 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.) Covariance %-Squared

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