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Probability Scenario Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -31% -11% 16% 21% Bond Fund Rate

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Probability Scenario Severe recession Mild recession Normal growth Boom 0.05 0.25 0.40 0.30 Stock Fund Rate of Return -31% -11% 16% 21% Bond Fund Rate of Return -10% 16% 9% -6% a.Calculate the values of mean return and variance for the stock fund. (Do not round intermediate calculations. Round "Mean return" value to 1 decimal place and "Variance" to 2 decimal places.) From Instructor Important: Please provide your answer to mean return in % and your answer to variance in %2 8.4 Mean return Variance b.Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicated by a minus sian. Do not round intermediate calculations. Round your answer to 2 decimal places.) b.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.) From Instructor Important: Please give your answer to covariance in %2, Covariance

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