FIN 3003 Principles of Investments 18S1 Home Assignment 2 The following table presents the performance of stock and bond funds under various scenarios. Probability Rate of return of Rate of return of stock fund (%) | bond fund (%) Scenario 0.05 0.25 -36 -10 15 I 34 -8 Severe recession Mild recession Normal growth 0.50 12 Boom 0.20 -4 a. Calculate the expected returns of the stock and bond funds. (4 marks) b. Calculate the standard deviations of the stock and bond funds. (4 marks)