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Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0. 20 0.40 0.30 Stock Fund Rate of Return - 41%
Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability 0.10 0. 20 0.40 0.30 Stock Fund Rate of Return - 41% - 21% 26% Bond Fund Rate of Return - 14% 20% 13% - 10% 31% 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 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 minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance
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