Suppose the rates of return of the bond portfolio in the four scenarios of Spreadsheet 6.1 are -10% in a severe recession, 10% in a mild recession, 7% in a normal period, and 2% in a boom. The stock returns in the four scenarios are -37%, -11%, 14%, and 30%. What are the covariance and correlation coefficient between the rates of return on the two portfolios? E Bond Fund Rate of Return -9 15 A B 1 2 Scenario Probability 3 Severe recession 0.05 4 Mild recession 0.25 5 Normal growth 0.40 6 Boom 0.30 7 Expected or Mean Return: Stock Fund Rate of Return Col B x Colc -37 -1.9 - 11 -2.8 14 5.6 30 9.0 SUM: 10.0 Col B x COLE -0.45 3.8 3.2 -1.5 5.0 -5 SUM