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Problem 6-7 (Algo) Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability @le 8.20 8.35 0.35 Stock Fund Rate of Return

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Problem 6-7 (Algo) Consider the following table: Scenario Severe recession Mild recession Normal growth Boom Probability @le 8.20 8.35 0.35 Stock Fund Rate of Return -28% -8.0% 4% 42% Bond Fund Rate of Return -10% 12% 2% 7% Required: 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 "Varlance" to 4 decimal places.) % Mean return Variance 9-Squared b. Calculate the value of the covarlance between the stock and bond funds. (Negative value should be indicated by a minus slgn. Do not round Intermediate calculations. Round your answer to 4 decimal places.) Covariance 9-Squared

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