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Consider the following table Stock FundBond Fund Rate of Return Probability 0.05 0.25 0.40 0.30 Rate of Return -11% 17% 10% 7% Scenario Severe recession
Consider the following table Stock FundBond Fund Rate of Return Probability 0.05 0.25 0.40 0.30 Rate of Return -11% 17% 10% 7% Scenario Severe recession Mild recession Normal growth Boom -26% 11% 16% b. Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 2 decimal place and "Variance" to 2 decimal places.) Mean return 6.4 % Variance c. 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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