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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.15 0.35 0.40 Stock Fund Rate of Return -320 -10.00 220

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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0.15 0.35 0.40 Stock Fund Rate of Return -320 -10.00 220 378 Bond Fund Rate of Return -100 66 100 76 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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