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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 32% 11% Mild recession 0.25 12%

Consider the following table:

Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.05 32% 11%
Mild recession 0.25 12% 17%
Normal growth 0.40 17% 10%
Boom 0.30 22% 7%

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 %-Squared

b. Calculate the value of the covariance between the stock and bond funds.

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