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Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.09 -34% -5 Mild recession 0....

Consider the following table:

Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.09 -34% -5
Mild recession 0.17 -18% 10
Normal growth 0.3 23% 6
Boom 0.44 32% -7

Required:
(a)

Calculate the values of mean return and variance for the stock fund. (Round your answers to 2 decimal places.)

Mean return
Variance

(b)

Calculate the value of the covariance between the stock and bond funds. (Round your answer to 2 decimal places. Negative amount should be indicated by a minus sign.)

Covariance
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Finance-8363328.xls

Consider the following table:
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.09 -34% -5
Mild recession 0.17 -18% 10
Normal growth 0.3 23% 6
Boom 0.44 32%...

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