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Stock Fund Rate of Return -41% -21% 25% 31% Bond Fund Rate of Return -14% 20% 13% -10% Scenario Probability 0.10 0.20 0.40 0.30 Severe
Stock Fund Rate of Return -41% -21% 25% 31% Bond Fund Rate of Return -14% 20% 13% -10% Scenario Probability 0.10 0.20 0.40 0.30 Severe recession Mild recession Normal growth Boom 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.) Mean return %-Squared Variance b. Calculate the value of the covariance between the stock and bond funds. (Negative value should be indicatec by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) Covariance %-squared
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