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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession .05 40% 9% Mild recession .25 14%
Consider the following table:
Stock Fund | Bond Fund | ||
Scenario | Probability | Rate of Return | Rate of Return |
Severe recession | .05 | 40% | 9% |
Mild recession | .25 | 14% | 15% |
Normal growth | .40 | 17% | 8% |
Boom | .30 | 33% | 5% |
Calculate the values of mean return and variance for the stock fund |
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