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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 -40% -9% Mild recession 0.25

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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 -40% -9% Mild recession 0.25 -14% 15% Normal growth Boom 0.40 17% 0.30 33% 8% -5% 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 11.2% %-Squared Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession Mild recession Normal growth Boom 0.10 -37% -9% 0.20 -11% 15% 0.35 14% 8% 0.35 30% -5% 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 9.5% %-Squared

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