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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -31% -11% 168

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -31% -11% 168 218 Bond Fund Rate of Return -109 168 98 -68 a.Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round value to 1 decimal place and "Variance" to 2 decimal places.) Mean return Variance % b.Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a not round intermediate calculations. Round your answer to 2 decimal places.)

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