For the next 4 questions suppose the following holds: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% The expected return and the standard deviation of the Stock Fund are 14% and 24.78%, respectively. What is the expected return of the Bond Fund? 7.2% 8.0% 8.4% 9.2% 9.6% Question 38 1 Point Continuation of the previous problem: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% What is the standard deviation of the Bond Fund? 7.67% 8.76% 9.33% 10.25% 12.34% Question 39 1 Point Continuation of the previous problem: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% What is the covariance between the Stock Fund and the Bond Fund? -120 (-0.012) -112 (0.0112) -89 (0.0089) -98 (0.0098) -75 (-0.0075) Question 40 1 Point Continuation of the previous problems: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% What is the correlation coefficient between the Stock Fund and the Bond Fund? -0.52 -0.44 -0.39 -0.18 0.23 Question 41 1 Point Continuation of the previous problem: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% What is the expected return on a portfolio which is 40% invested in the stock fund and the rest in the bond fund? 9.9% 10.4% 11.2% 11.6% 12.2% Question 42 1 Point Continuation of the previous problem: Consider the following probability distribution for Stock Fund (S) and Bond Fund (B). State Probability Return on Bond Fund Return on Stock Fund 1 .2 -8% 20% 2 .4 8% 40% 3 .4 16% -15% What is the standard deviation of the return on the above portfolio (40% in stock and 60% in bond)? 6.2% 7.5% 8.5% 9.4% 10.5%