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Consider the following table: Stock Fund Rate of Return -37% -11% 14% 30% Bond Fund Rate of Return -9% 15% 8% -5% Scenario Severe recession

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Consider the following table: Stock Fund Rate of Return -37% -11% 14% 30% Bond Fund Rate of Return -9% 15% 8% -5% Scenario Severe recession Mild recession Normal growth Boom 10 20 .35 .35 nd into You 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 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 OWS eBook & Resources eBook: Asset Allocation with Two Risky Assets

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