Information is applicable to questions 3-5 You have been provided with the below information related to potential returns on bonds and shares under different economic conditions.

Scenario	Probability	Return.on.Shares	Return.on.Bonds
Boom	8%	47%	15%
Positive Growth	14%	44%	7%
Normal Growth	35%	6%	5%
Negative Growth	30%	2%	2%
Recession	5%	-8%	-1%
Crash	8%	-17%	-6%

Question 3 Calculate the covariance between shares and bonds. A) 0.0076 B) 0.0086 C) 0.0067 D) 0.0068 E) 0.0076 Question 4 Calculate the expected return of a portfolio assuming an equal weight in shares and bonds. A) 7.43% B) 5.91% C) 6.58% D) 8.25% E) 7.58% 3 Question 5 Calculate the variance of a portfolio assuming an equal weight in shares and bonds. A) 0.0136 B) 0.0137 C) 0.0145 D) 0.0124 E) 0.0112