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Consider the table below. Calculate covariance between stock and bond. Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.1

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Consider the table below. Calculate covariance between stock and bond. Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.1 -38 - 11 Mild recession 0.2 -18 17 Normal growth 0.4 23 10 Boom 0.3 28 -7 -20.05 O-29.04 0-52.11 O-43.66

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