Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 –31 % –10 % Mild recession 0.25 –11 % 16 % Normal growth 0.40 16 % 9 % Boom 0.30 21 % –6 % a.Calculate the values...

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Finance

Consider the following table:
Stock Fund Bond Fund
Scenario Probability Rate of Return Rate of Return
Severe recession 0.05 –31 % –10 %
Mild recession 0.25 –11 % 16 %
Normal growth 0.40 16 % 9 %
Boom 0.30 21 % –6 %

a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.)

b.Calculate the value of the covariance betweenthe stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 2 decimal places.)

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Question a Let P Probabilities as given and X represents the returns Mean Sum of the product of probability and returns sum X P 840 see the table Dx Deviation from mean X 840 See Answer

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Consider the following table:Stock FundBond FundScenarioProbabilityRate of ReturnRate of ReturnSevere recession0.05–31%–10%Mild recession0.25–11%16%Normal growth0.4016%9%Boom0.3021%–6%a.Calculate the values of mean return and variancefor the stock fund. (Do not round intermediatecalculations. Round "Mean return" value to 1 decimal place and"Variance" to 2 decimal places.)b.Calculate the value of the covariance betweenthe stock and bond funds. (Negative value should beindicated by a minus sign. Do not round intermediate calculations.Round your answer to 2 decimal places.)

Consider the following table: Stock Fund Bond Fund Scenario Probability Rate of Return Rate of Return Severe recession 0.05 –31 % –10 % Mild recession 0.25 –11 % 16 % Normal growth 0.40 16 % 9 % Boom 0.30 21 % –6 % a.Calculate the values...

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Finance

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		Stock Fund		Bond Fund
Scenario	Probability	Rate of Return		Rate of Return
Severe recession	0.05	–31	%	–10	%
Mild recession	0.25	–11	%	16	%
Normal growth	0.40	16	%	9	%
Boom	0.30	21	%	–6	%